MENA region sees 14 IPOs valued at $2.64bn in Q2 2024

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The Middle East and North Africa (MENA) region witnessed 14 initial public offerings (IPOs) raising $2.64 billion in the second quarter of 2024, according to the EY MENA IPO Eye Q2 2024 report. The number of IPOs increased from 13 in the same quarter last year, with proceeds rising 45.3 per cent.

Saudi Arabia led the region’s IPO activity with 11 listings, including five on the Tadawul main market. Dr Soliman Abdul Kader Fakeeh Hospital raised the highest proceeds of $764m, accounting for 29 per cent of the total.

In the UAE, Alef Education Consultancy and Spinneys 1961 Holding were the only companies to go public, raising $515m and $375m, respectively. Kuwait saw its first IPO since 2019, with Beyout Investment Group (BIG) Holding raising $147 million on the Kuwait Stock Exchange.

Saudi Arabia to see 14 companies go public by the end of the year

Brad Watson, EY MENA strategy and transactions leader noted, “The MENA IPO market remained resilient in Q2 2024 despite global challenges, buoyed by increased liquidity and positive market sentiment driven by higher oil prices.”

Eight out of the 14 MENA IPOs in Q2 2024 delivered positive returns by the end of June, with Miahona Company achieving the highest gain of 90.4 per cent.

Saudi Arabia continues to dominate the regional IPO landscape, raising a total of $1.6bn in the quarter. The kingdom also leads in pipeline activity, with 14 companies expected to go public by the end of 2024.

The UAE’s contribution to the quarter’s total proceeds was significant, while Kuwait’s return to IPO activity marks a notable development in the region.

Global IPOs

Globally, IPO activity declined, with the number of IPOs dropping 15 per cent year-on-year and proceeds falling 31 per cent to $27.8bn.

However, the EMEIA region showed a strong recovery, regaining the top global IPO market share for the first time in 16 years.

Globally, in H1 2024, 551 listings were raising $52.2bn in capital, a 12 per cent decrease in the number of IPOs and a 16 per cent drop in proceeds raised YOY. This result is mainly due to a slowdown in Asia-Pacific IPO activity with the Americas and Europe, the Middle East, India and Africa (EMEIA) seeing robust growth in H1.