MENA IPO Market Flourishes With $2.64 Billion Raised, UAE And Saudi Arabia At Forefront

The IPO market in the Middle East and North Africa (MENA) region resilience in Q2 2024. Fourteen IPOs generated total proceeds of $2.64 billion, marking a 45.3% increase compared to the same period last year.

According to an Ernst & report on IPO activity in the MENA region, Dr. Soliman Abdul Kader Fakeeh Hospital Co listed on Saudi Arabia's main market during this period. This listing raised $764 million, accounting for 29% of the region's IPO proceeds for the quarter.

The Abu Dhabi Securities Exchange (ADX) saw Alef Education Consultancy LLC's listing, which contributed 19.5% or $515 million to the total proceeds. Together with Spinneys 1961 Holding Plc, these UAE companies accounted for 33.8% of the region's total proceeds for the quarter.

Saudi IPOs collectively raised $1.6 billion during this period. The Saudi Manpower Solutions Company (SMASCO) secured the kingdom's second-largest amount, while Rasan Information Technology Company followed with $224 million.

Boursa Kuwait experienced its first listing since Q4 2019 with Beyout Investment Group (BIG Holding). This listing raised $147 million, marking a significant event for Kuwait's market.

The report also highlighted that the remainder of 2024 is expected to see robust activity in the IPO market. Sixteen private companies and seven funds across various sectors are planning to list on MENA exchanges.

Meanwhile globally, IPO activity saw a decline when compared to Q2 2023. The number of IPOs dropped by 15 percent from 317 to 271, and proceeds decreased by 31% from $40.4 billion to $27.8 billion.

This trend contrasts sharply with the MENA region's performance, where significant listings and increased proceeds were observed despite global downturns.

The strong performance in MENA’s IPO market underscores a growing investor confidence and a robust economic environment in the region.