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MENA equity capital markets (ECM) raised $1.2 billion in equity and equity-related issuances in Q1 2024, down 6% year-on-year and the lowest first quarter total since 2021, data from the London Stock Exchange Group (LSEG) showed.
The number of issues declined 14% from 2023.
Initial public offerings (IPOs) accounted for 80% of activity, while follow-on issuance accounted for 20%.
A total of nine IPOs were recorded during Q1, four less than during the first quarter of 2023. They raised a combined $931.4 million, 74% less than the total proceeds raised by IPOs during the same period last year.
Dubai parking operator Parkin raised $428.7 million in its stock market debut in March, the largest IPO in the region in the first quarter of 2024.
Modern Mills Co. of Saudi Arabia raised $314 million, while Middle East Pharmaceutical Industries Co., also from the kingdom, raised $130 million in IPOs.
The consumer products & services sector was most active with issuers raising $448.1 million, accounting for 38% of total equity capital raisings in the region in the first quarter of 2024.
Consumer Staples and Materials followed, accounting for 27% and 15%, respectively.
Emirates NBD PJSC and HSBC share first place in the MENA ECM underwriting league table during the first quarter of 2024, each with a 19.5% market share. Both raked in $228.6 million as fees.
(Writing by Brinda Darasha; editing by Seban Scaria)
