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The MENA region saw 14 IPOs valued at $2.64 billion in the second quarter, with Saudi Arabia leading the market with 11 offerings, followed by the UAE and Kuwait.
Key listings included Dr Soliman Abdul Kader Fakeeh Hospital Co on Saudi Arabia’s main market, raising $764 million, 29% of the region’s IPO proceeds for the quarter, followed by Abu Dhabi Securities Exchange’s (ADX) listing of Alef Education Consultancy LLC which contributed 19.5% or $515 million.
Kuwait also saw its first listing since 2019 with Beyout Investment Group (BIG Holding).
EY described MENA IPO activity during the quarter as ‘resilient’, with 14 listings compared to 13 year-on-year and with proceeds up 45.3%, bucking the global trend, which declined by 15% for number of deals with proceeds down by 31%.
Brad Watson, EY MENA strategy and transactions leader, said: “Increased liquidity driven by higher oil prices, economic recovery, and positive market sentiment has kept the IPO activity in the region buoyant with a strong pipeline for H2 2024.”
EY said eight out of the 14 MENA IPOs listed in Q2 2024 had shown a positive return at the end of the quarter by share price in comparison with their IPO price, with Saudi Arabia’s Miahona Company achieving the highest gain of 90.4%.
Saudi IPOs raised $1.6 billion during the quarter, with Saudi Manpower Solutions Company (SMASCO) raising the kingdom’s second largest amount and Rasan Information Technology Company third at $224 million.
The UAE’s Alef Education Consultancy LLC and Spinneys 1961 Holding Plc accounted for 33.8% of the region’s total proceeds for the quarter.
Robust IPO activity is expected with 16 more private companies and seven funds expected to list on MENA exchanges during the year, EY said - 14 in Saudi Arabia, one in the UAE as well as Go Bus in Egypt.
Gregory Hughes, EY MENA IPO Leader, said: “As we enter a phase of declining interest rates and continue to witness major country elections around the world, we will monitor with interest the subsequent impact on regional markets and IPO activity.”
Globally, IPO activity declined in comparison to Q2 2023, down 15% from 317 to 271, with proceeds down by 31% to $27.8 billion.
The Europe, Middle East, India and Africa (EMEIA) region saw inflation approaching ‘normal’ levels, interest rates falling, stock markets rallying to hit all-time highs, and volatility remaining low, EY said, gaining the top global IPO market share by number – 45% of deal volume and 46% of value - for the first time in 16 years.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
