GCC’s maturing IPO market— and what to expect next

Investor appetite in the Gulf is evolving, says Mohamed Ebeid, co-chief executive officer of EFG Hermes, an EFG Holding company, with a shift toward quality issuers, long-term capital, and sector-focused plays in tech, healthcare and education

The GCC IPO pipeline has remained resilient despite global headwinds. What’s your current assessment of investor appetite for IPOs in the region, particularly in markets like Saudi Arabia and the UAE?

Investor appetite in the region remains strong across local, regional, and international participants. That said, over the past 12 months we’ve observed a shift toward greater selectivity. Investors are now more focused on specific sectors and high-quality issuers rather than participating across the board.

Additionally, recent corrections in regional equity markets have moderated valuation expectations, placing more scrutiny on new issuance pricing to ensure alignment with current market realities.

EFG Hermes acted as joint bookrunner on Alpha Data’s recent DFM listing. How did that IPO perform relative to expectations, and what does it tell us about the tech and digital services investment story in the UAE?

The Alpha Data IPO outperformed other recent equity offerings in the UAE . While the transaction size was more modest than others, investor interest was high, reflecting strong confidence in the company’s fundamentals.

Alpha Data’s established market position, consistent profitability, and diversified service offering— particularly in IT infrastructure and digital transformation — resonated well with both institutional and retail investors.

The deal underlines growing investor appetite for profitable, scalable tech companies that are driving innovation and operational excellence in the UAE.

Valu has been one of MENA’s most talked-about fintechs — what’s the latest on its potential IPO, and how is EFG approaching the timing and structure for a listing?

The EFG Holding board has just announced a first-of-its-kind transaction, where it will distribute 20 per cent of Valu to its shareholders in the coming months. With this distribution, the company will become listed on the EGX and traded freely by all. Following the board’s approval, we will be approaching our general meeting for their approval in May, with trading expected to take place in June.

How are institutional investors currently viewing GCC IPOs? Are we seeing more long-term capital come in, or is there still a tilt toward short-term gains post-listing?

We’ve seen a significant structural evolution in the GCC equity capital markets over the past three years. Sovereign wealth funds’ capital recycling programmes, consistent allocations to regional asset managers, and wealth creation among family offices, particularly in light of major infrastructure investments, have all contributed to a more stable and maturing investor base. This has fostered a healthy supply-demand dynamic and increased long-term participation. While short-term gains remain attractive to certain retail investors and hedge funds, the overall trend is toward a more strategic, long-term investment approach.

Looking ahead, which sectors do you see as the next big IPO plays in the GCC, and how is EFG positioning itself to lead or participate in those future deals?

We believe consumer, healthcare and education sectors will remain top of mind for institutional investors, offering compelling opportunities for IPOs in the region. At EFG Hermes, our strategy emphasises early engagement, bringing together prospective issuers and investors well before a transaction is live. This approach allows us to shape and refine the equity story collaboratively, ensuring both parties are aligned and well-prepared when the company decides to come to market. It also enables us to provide valuable investor feedback early on, helping companies optimse their positioning and readiness.