Middle East IPOs Defy Global Trend, Raising $2.64 Billion in Q2 2024

The IPO market in the Middle East and North Africa (MENA) region demonstrated strong resilience in the second quarter of 2024, with 14 IPOs raising a total of $2.64 billion, marking a 45.3% increase compared to the same period last year.

This performance contrasts sharply with the global IPO market, which saw a decline in both the number of IPOs and the total proceeds.

According to a report by Ernst & Young, the most significant IPO in the MENA region during this period was the listing of Dr Soliman Abdul Kader Fakeeh Hospital Co on Saudi Arabia’s main market, which raised $764 million, accounting for 29% of the region’s IPO proceeds. The Abu Dhabi Securities Exchange (ADX) also made a substantial contribution with the listing of Alef Education Consultancy LLC, which raised $515 million, representing 19.5% of the total proceeds for the quarter.

The UAE's Alef Education Consultancy LLC and Spinneys 1961 Holding Plc collectively accounted for 33.8% of the region's IPO proceeds during this quarter. In Saudi Arabia, IPOs generated a total of $1.6 billion, with Saudi Manpower Solutions Company (SMASCO) and Rasan Information Technology Company raising significant amounts.

Additionally, Boursa Kuwait saw its first IPO since 2019 with the listing of Beyout Investment Group (BIG Holding), which raised $147 million.

Looking ahead, the report indicates that the remainder of 2024 will continue to see robust IPO activity in the MENA region, with 16 private companies and seven funds planning to list on various exchanges. This regional growth stands in contrast to the global IPO market, which saw a 15% decrease in the number of IPOs and a 31% drop in proceeds compared to Q2 2023.

News Source: Emirates News Agency