The IPO market in the Middle East and North Africa (MENA) region demonstrated resilience during the second quarter of this year. According to the Ernst & Young report, the region witnessed 14 IPOs that generated total proceeds of $2.64 billion, a 45.3 percent increase compared to the same period last year.
The quarter saw the listing of Dr. Soliman Abdul Kader Fakeeh Hospital Co on Saudi Arabia’s main market, raising $764 million, which accounted for 29 percent of the region’s IPO proceeds. Another notable listing was Abu Dhabi Securities Exchange’s (ADX) Alef Education Consultancy LLC, contributing 19.5 percent or $515 million to the total.
Additionally, the UAE’s Alef Education Consultancy LLC and Spinneys 1961 Holding Plc together accounted for 33.8 percent of the region’s total IPO proceeds for the quarter.
Read more: Majority of Middle East IPOs experience positive aftermarket gains in 2024: Report
Saudi Arabia’s IPO market remained active, with companies raising a total of $1.6 billion. The Saudi Manpower Solutions Company (SMASCO) and Rasan Information Technology Company were among the notable IPOs, raising $224 million and $147 million, respectively.
Boursa Kuwait also saw its first listing since the fourth quarter of 2019, with the offering of Beyout Investment Group (BIG Holding), which raised $147 million.
Looking ahead, the report suggests that the remainder of 2024 is expected to witness strong IPO activity in the MENA region, with 16 private companies and seven funds across various sectors planning to list on regional exchanges.
Decline in global IPO activity
In contrast, global IPO activity declined in the second quarter of 2024 compared to the same period in 2023. The number of IPOs decreased by 15 percent, from 317 to 271, and the total proceeds declined by 31 percent, from $40.4 billion to $27.8 billion.
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