Frontier Market Issuances Could Pick Up Speed Next Year

Frontier markets have gotten more attention from private equity funds in the last few years, but equity issuances have remained incredibly low. Market capitalization is just 3.5% of GDP across FM compared to 60.5% of GDP among developed markets and 17.4% in emerging markets. Market cap isn’t going to catch up to EM anytime soon, but Citi analyst Maria Gratsova thinks that equity issuances should perk up next year.

Frontier Market issuance pick-up

“There is as of yet no flood of paper on the horizon in Frontier Market,” writes Gratsova. “We do, however, expect a modest pick-up in issuance: on the...