MENA IPO outlook remains positive
The MENA IPO market is expected to perform well as 2024 comes to a close. This growth is supported by government initiatives for economic diversification. There is also a growing interest from both regional and global investors in the region’s opportunities.
According to the EY MENA IPO Eye Q3 2024 report, the MENA region had five IPOs in Q3, raising $0.93 billion. This is a 76.8% increase in proceeds compared to last year. The largest amount came from NMDC Energy in the UAE, which raised $877 million.
While global IPO markets slowed down, the MENA markets showed strength. More IPOs are expected in the last quarter of 2024.
The UAE had the largest IPO of Q3 with NMDC Energy raising $877 million on the Abu Dhabi Securities Exchange (ADX). This accounted for nearly 95% of the region’s IPO proceeds for the quarter, highlighting the UAE’s growing role in this market. Additionally, new emissions reporting and decarbonization laws in the UAE, effective May 2025, will impact several sectors and emphasize Environmental, Social, and Governance (ESG) goals.
Saudi Arabia also excelled in IPO volume. It had three out of the five regional IPOs in Q3, raising a total of $27 million. Tharwah Human Resources Company led with $12 million. These IPOs were listed on the Nomu – Parallel Market, which is popular for small and medium-sized enterprises (SMEs). Saudi Arabia also had two direct listings on Nomu.
Egypt contributed to the MENA IPO scene by hosting the first non-GCC IPO of 2024. Act Financial’s listing on the Egyptian Exchange (EGX) achieved a 16.3% gain post-IPO, the highest in Q3. This was also the EGX’s first listing in two years.
Looking ahead, Q4 is shaping up to be busy. Eleven private companies and five funds are preparing for IPOs across various sectors. Companies like LuLu Group International and Talabat Middle East plan to go public.
In Saudi Arabia, several companies have received Capital Market Authority (CMA) approval, strengthening the country’s IPO pipeline.
Despite facing some challenges, the MENA stock exchanges have remained resilient. The EGX30 index in Egypt rose 26.8% year-to-date. Four of the five IPOs in Q3 gained above their listing prices, showing strong investor confidence.
Brad Watson from EY highlighted the MENA IPO market’s resilience despite global uncertainties. Gregory Hughes noted the activity in the MENA market, especially the success of the Tadawul Nomu – Parallel Market for SMEs.
Overall, the MENA IPO market is expected to continue growing in the final quarter of 2024, supported by government efforts and increasing investor interest.
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