EFG Hermes sees Gulf IPO frenzy from private sector in 2024

DUBAI, March 4 (Reuters): Emerging market-focused investment bank EFG Hermes, opens new tab is "very bullish" on Gulf markets this year, expecting more, smaller initial public offerings (IPOs) from the region from a year earlier, Mostafa Gad said on Monday.

Smaller deals are likely to become the norm in 2024 as the private sector becomes the main issuer seeking capital, a boon for mid-market focused investment banks like EFG Hermes and a change from large bulge bracket deals from government privatisations, investment banking head Gad said.

"The inflow [of issuers] is coming more from the private sector. For banks that require a certain amount of a certain magnitude of offerings for them to justify their presence, maybe they can struggle a bit", Gad said in an interview with Reuters.

Gad said his bank tends to focus on deals between $300 million and $700 million, and added he would like to see the team, which currently has 50 bankers covering the region, expand and is looking to hire junior analysts.

The Gulf has bucked expectations of a muted start to the year with public share sales from Dubai's public parking space operator Parkin, Saudi Arabia's Modern Mills, and Saudi healthcare firm Avalon Pharma.