The rate of initial public offerings, or IPOs, in the United States has slowed to an almost unprecedented level. The founders and owners of relatively young American companies today more often prefer to continue raising money from private investors, instead of becoming subject to the vicissitudes of the public markets.
That has left some supposing that the glory days of the IPO are now firmly in the past. In fact, IPO activity in other parts of the world is still ramping up and will almost certainly continue to do so for years to come. As the manager of the IPO-focused fund that was named the best in the Middle East and North Africa (MENA) by an independent authority, Al Masah Capital Management is helping investors see the light.
Investors Today Need to Look Elsewhere if They Wish to Focus on IPOs
It used to be common for investors with the right connections to secure significant portions of their returns in the course of IPOs. Being able to buy stock in a company that was about to become public before the associated market actually opened could almost guarantee profits for those who were so privileged.
Unfortunately, IPO activity in the United States and Western Europe has dropped to the point that this is no longer a reliable option even for those with the strongest networks and reputations. Far from meaning that this historically rewarding style of investing has to be ruled out, however, this relatively recent development simply signals that investors need to broaden their horizons.
In MENA, for example, IPO rates have been climbing steadily for years, and most experts believe that they will continue to do so. With more and more businesses in MENA maturing to the point that public offerings make excellent sense, investors who are positioned to become involved stand to benefit greatly.
MENA-Based IPO Funds Attract More and More Investors
As with the IPOs of times past elsewhere, however, taking advantage of such opportunities in MENA requires having access to the right kinds of connections. MENA-focused, IPO-oriented funds have started to come onto the radar of many investors from elsewhere who appreciate the kinds of returns that this style of investment can generate.