Emirates NBD resumes stock trading with Dubai IPOs

DUBAI, Oct 21 (Reuters) – Emirates NBD ( ENBD.DU ) has won the lead in all of Dubai’s initial public offerings this year, raising fees and improving its long-standing business amid stiff competition from local and international banks. .

Dubai’s largest lender, which is majority-owned by the Dubai government, helped manage Dubai Electricity and Water Authority, business park operator Tecom and toll road operator Salik, which raised more than $7.5 billion.

ENBD asked for the sixth-highest payout of the 12th Gulf IPO last year, earning about $14.55 million this year and $4.85 million in 2021, according to Refinitiv data.

Data shows that while HSBC holds first place, Saudi National Bank and Riyadh Bank are second and third.

The UAE’s second largest lender by assets is known for its strong debt franchise, but has shifted its focus to equity capital market (ECM) business to monitor the increase in transfers and this year’s bond issuance has declined in the market due to volatility and rising interest rates.

“They are building on their research capabilities and distribution to their private banking and retail clients,” said Mohammed Ali Yassin, an investment and capital markets consultant in Abu Dhabi.

It has recruited its debt bankers to work on ECM deals and has also hired at least two junior investment bankers, sources familiar with the matter said.

Emirates NBD did not immediately respond to an emailed request for comment.

ENBD’s ECM business is heavily reliant on new business on Dubai’s equity markets, which have been plagued by years of pent-up investor sentiment following the 2014 oil price crash, exacerbated by a surge in company listings.

Dubai has moved to shore up its market amid intense competition from other Gulf states, including Saudi Arabia, which in November announced plans to list 10 state-linked companies.

More than $15 billion has been raised in Gulf listings this year, according to Refinitiv data. Saudi Arabia had 24 IPOs that raised $4.75 billion, while the United Arab Emirates had seven that raised more than $10 billion, data showed.

The region has seen an increase in outflows from investors since MSCI dropped Russia from its emerging markets index following its crackdown on Ukraine.

“If there’s a bright spot globally at the moment, it’s in the Gulf, where markets are experiencing the effects of FMO (fear of missing out) from investors,” said Samer Dehaily, co-head of capital finance and investment banking coverage at HSBC. .

With new investors entering the region, many large funds are moving to the Middle East, “meeting bankers, some of them trying out new details to see avenues from settlement, and working from a practical perspective,” Dehaily said.

Reporting by Yusuf Saba and Hadel Al Sayegh; Editing by Elaine Hardcastle

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