54 IPOs raised $12.6bn in 2024 in MENA region, shows report

The Middle East and North Africa (MENA) region saw a notable surge in initial public offerings (IPOs) in 2024, with 54 listings raising a total of $12.6bn, according to the EY MENA IPO Eye Q4 2024 report.

This marks a 12.5 per cent increase in the number of IPOs and a 17.6 per cent rise in proceeds compared to the previous year.

Q4 Surge: 32 per cent more IPOs, 59 per cent higher proceeds

According to the EY report, the fourth quarter of 2024 was a standout, with 25 IPOs raising $7.9bn—representing a 32 per cent increase in the number of listings and a 59.4 per cent surge in funds raised compared to Q4 2023.

The spike in proceeds was driven by high-value IPOs such as Talabat Holding plc, OQ Exploration & Production, and Lulu Retail Holdings, which listed during the final quarter of the year.

Talabat, which went public on the Dubai Financial Market (DFM), raised the largest amount of proceeds in Q4, contributing 25.8 per cent of the total quarterly funds.

The second-largest IPO came from OQ Exploration & Production, which raised $2bn in the largest-ever IPO in Oman. Together, these two listings accounted for nearly half of the total Q4 proceeds.

Outside the GCC, Morocco’s Compagnie Marocaine de goutte a goutte et de pompage (CMGP) and Egypt’s United Bank also made their market debuts during Q4.

Saudi Arabia leads the pack with 17 listings in Q4

Saudi Arabia continues to dominate the region’s IPO activity. In Q4 2024, the kingdom accounted for 17 of the 25 IPOs, raising a total of $1.2bn. Of these, five listings took place on the Tadawul Main Market, collectively raising $1.1bn.

The highest proceeds came from Arabian Mills for Food Products Company and United International Holding Company, each raising $300m.

In total, IPO activity in Saudi Arabia was driven by a diverse range of sectors, including commercial and professional services (20 per cent), materials (12.5 per cent), food and beverages (10  per cent), and healthcare (10 per cent).

UAE’s robust performance and ESG focus

The UAE saw strong IPO activity as well, with four new listings during Q4 2024. On the Abu Dhabi Securities Exchange (ADX), Lulu Retail Holdings PLC raised $1.7bn and ADNH Catering PLC raised $235m.

Additionally, the DFM welcomed Talabat Holding plc, which raised $2bn, continuing the trend of high-value listings in the region.

As the UAE moves toward its net-zero 2050 target, the country has also introduced a law requiring businesses to report carbon emissions, starting in May 2025. The law aims to encourage companies to adopt decarbonisation strategies, including renewable energy and carbon offsetting. This emphasis on sustainability is expected to play a key role in shaping IPO market dynamics as companies align with the UAE’s environmental goals.

Positive outlook for 2025 IPOs in MENA region

Looking ahead, the MENA IPO market is poised for continued growth. EY’s Gregory Hughes, IPO and transaction diligence leader, noted that Q4 2024 accounted for 46 per cent of the total IPO activity in the region for the year, underscoring the strong momentum. Saudi Arabia’s Nomu Parallel Market remains a key driver, accounting for 50 per cent of Q4 listings.

In 2025, 38 companies and 22 funds are expected to list across the region’s exchanges. Among the GCC countries, Saudi Arabia leads with 27 companies in the pipeline, followed by the UAE with three and Qatar with one.

Companies such as Etihad Airways and Amanat Holdings from the UAE, and Panda Retail Company and Riyad Capital from Saudi Arabia, are among those considering IPOs in the coming year.

The MENA IPO market is expected to remain a key player globally as regional exchanges continue to innovate and attract investors with strong governance and sustainability initiatives.

Brad Watson, EY MENA strategy and transactions leader, says: “The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market. The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market.

“In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity. The market is also anticipating the Arena platform from the DFM, which is expected to launch in 2025.”

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