Middle East sees growth, 14 IPOs raise $2.64 billion, led by UAE, Saudi Arabia

ABU DHABI, 13th August, 2024 (WAM) — The IPO market in the Middle East and North Africa (MENA) region remained resilient in the second quarter of this year, with 14 IPOs recording a total revenue of $2.64 billion, an increase of 45.3 per cent compared to the same period last year.

In the second quarter of this year, Dr. Soliman Abdul Kader Fakeeh Hospital Co.’s listing on Saudi Arabia’s main market raised $764 million, or 29 percent, of the region’s IPO revenues in the quarter, according to Ernst & Young’s MENA IPO Activity Report. This was followed by the listing of Alef Education Consultancy LLC on the Abu Dhabi Securities Exchange (ADX), which raised 19.5 percent, or $515 million.

Alef Education Consultancy LLC and Spinneys 1961 Holding Plc of the United Arab Emirates accounted for 33.8 percent of the region’s total revenue in the quarter.

Saudi IPOs raised $1.6 billion during the quarter. Saudi Manpower Solutions Company (SMASCO) raised the second-largest amount in the kingdom, while Rasan Information Technology Company came in third with $224 million.

Boursa Kuwait made its first public debut since Q4 2019, with Beyout Investment Group (BIG Holding) raising $147 million.

According to the report, the rest of 2024 is expected to see an increase in IPO activity, with 16 private companies and seven funds from various sectors planning to list on MENA exchanges.

Globally, the number of IPOs fell 15% year-on-year from 317 to 271 in Q2 2023, while revenues declined 31% from $40.4 billion to $27.8 billion.