The MENA region witnessed 14 initial public offerings (IPOs) in the second quarter of 2024, raising $2.64 billion, according to the EY MENA IPO Eye Q2 2024 report. This marks an increase from the 13 IPOs in the same quarter of 2023, with proceeds up by 45.3%.
Dr Soliman Abdul Kader Fakeeh Hospital Co. led the quarter, raising $764 million with its listing on the Tadawul main market, accounting for 29% of the overall IPO proceeds. Alef Education Consultancy followed with $515 million raised from its Abu Dhabi Securities Exchange listing.
Saudi Arabia dominated the regional IPO activity, with 11 of the 14 IPOs in Q2 2024. KSA raised a total of $1.6 billion, with the top three contributors being Dr Soliman Abdul Kader Fakeeh Hospital Co. ($764 million), Saudi Manpower Solutions Company (SMASCO) ($240 million), and Rasan Information Technology Company ($224 million). The remaining six IPOs on the Nomu market raised a total of $85.4 million.
The UAE also made significant contributions, with Alef Education Consultancy and Spinneys raising a combined $890 million, accounting for 33.8% of the quarter’s total proceeds. Kuwait marked its first listing since Q4 2019, with Beyout Investment Group (BIG) Holding Co. raising $147 million on the Kuwait Stock Exchange.
The remainder of 2024 is expected to see further IPO activity, with 16 private companies and seven funds across various sectors intending to list on MENA exchanges. Among these, 14 companies are from Saudi Arabia, one from the UAE, and one from Egypt.
“The MENA IPO market continued to be led by the KSA and the UAE markets. However, the Kuwait Boursa welcomed their first listing since 2019,” said Gregory Hughes, EY MENA IPO Leader. “There is a continued focus on economic diversification away from oil and gas, with the MENA region continuing to see listings from a variety of sectors including health care, education, consumer goods and professional services.
As we enter a phase of declining interest rates and continue to witness major country elections around the world, we will monitor with interest the subsequent impact on regional markets and IPO activity.
Gregory Hughes
Globally, IPO activity declined in Q2 2024 compared to Q2 2023, with the number of IPOs down by 15% and proceeds falling by 31%. However, the EMEIA region regained the top global IPO market share by number and value for the first time in 16 years.
The International Financial Reporting Standards (IFRS) sustainability disclosure standards were applied for annual reporting periods beginning in January 2024, integrating sustainability reporting into the broader financial reporting process globally and in the MENA region.
