Equity markets across the MENA region saw 14 initial public offerings in the second quarter of 2025, raising a total of $2.5 billion, according to the latest EY MENA IPO Eye report.
Saudi Arabia drove most of the activity with 13 listings that accounted for approximately $1.9 billion in proceeds, led by flynas on the Tadawul Main Market. The airline’s float raised $1.1 billion, or 44.2% of the quarter’s total, completing in minutes amid heavy demand. Specialized Medical Company followed with $500 million raised, while United Carton Industries added $160 million. The remaining ten listings, all on the Nomu Parallel Market, contributed $136 million.
In the UAE, Dubai Residential REIT listed on the Dubai Financial Market and secured $584 million, representing 23.6% of the quarter’s total and marking the region’s first pure‑play residential leasing REIT.
Comparative data show a modest rise in proceeds from Q1 2025, which brought in $2.4 billion from 14 IPOs. However, year‑on‑year figures show a 6.2% drop from Q2 2024 levels, reflecting investor caution amid trade tensions and geopolitical uncertainty.
Aftermarket performance was mixed. Only five of the 14 listings closed above their offer price, while the remainder ended below, indicating cautious sentiment in capital markets.
Market structure in Q2 shows a shift toward secondary listings, now accounting for a larger share of proceeds compared to primary listings, a signal that issuers prioritise liquidity for existing shareholders over fresh capital. Regulatory developments in the UAE, including the introduction of Internal Control Over Financial Reporting (ICFR), suggest a tightening of governance standards to bolster investor confidence.
The outlook for the second half of 2025 remains active. Fourteen companies, including firms in non‑GCC markets such as Egypt, Tunisia, and Morocco, plan to go public. Saudi Arabia continues to lead the pipeline with ten anticipated IPOs.
MENA capital markets have kept pace with broader global listings, despite a quieter US IPO market in Q2. Globally, 241 IPOs raised $31.5 billion in the same period, their weakest second quarter since 2020.
