impaQta enhances its portfolio
Dubai, February 23, 2008
impaQta, the leading regional management advisory firm, has enhanced its business and advisory solutions portfolio to capitalise on the continued upturn in the GCC's capital markets.
In 2007 alone, recent reports have revealed that IPOs in the region have raised a combined total of $12.8 billion, essentially powered by a strong performance in the last two quarters during which a total of $8 billion was generated.
impaQta warned though that several more companies have failed to fully capitalise on the advantages of going public primarily because of issues related to a lack of transparency.
"Our region has witnessed a number of IPOs in the last three years with a handful in the range of billions. The government has played an important role in this emerging trend by encouraging companies to share the wealth with the public through IPOs. In 2008, I believe it will be a very busy year in the GCC capital market as we anticipate major changes in the landscape," said chairman of the board of directors, impaQta, Rashad Kanbar.
"impaQta has prepared adequately for this by boosting our business and advisory services portfolios and increasing our presence in high-growth areas to help a large number of companies in the region that fall short in developing a clear vision and strategic objectives to target going IPO. These businesses are run today the same way they used to run 20 years ago. This is not the way to go IPO," added Kanbar.
With transparency being one of the key elements to a successful IPO, Kanbar stressed that companies must work on improving corporate governance, strengthening the company's board and committees, and adopting a proper structure.
He also said that organisations must have the right strategic approach and not just take IPOs as a way to generate more money, but more as an avenue to boost growth and unleash full potential.
Without an experienced and highly capable management advisory team, executing IPO can be a long and stressful process to most organisations, causing significant disturbance to core operations, particularly because the whole process is usually too complex and involves several legal parties, advisors, bankers, PR and marketing arms and other resource-intensive factors.
The challenges when going IPO include selecting the right partners, internal restructuring to improve performance in preparation for the IPO, market condition assessment and choosing the appropriate time to go IPO, lack of middle management, unavailable documentations, internal capabilities, and tight deadline and time frames.
impaQta has rapidly expanded its advisory team from three to 25 top-notch consultants from the Arab World since it was established in 2004. With its consultants' collective experience covering several domains and industries, impaQta has gathered an impressive portfolio of clients that includes prominent players in real estate development, investment, financial services, and telecommunications. – TradeArabia News Service