The IPO market in the Mena region, particularly in Saudi Arabia and the United Arab Emirates, saw robust activity in the first quarter of 2024, according to the EY Mena IPO Eye Q1 2024 report. There were a total of 10 IPOs in KSA and UAE, raising a combined total of $1.2 billion. Globally, there were 287 IPOs in Q1 2024, raising $23.7 billion, marking a 7 percent increase in value year on year. A further 25 private companies and 10 funds across various sectors are expected to list on Mena exchanges in 2024, with KSA leading the way with 21 announced IPOs.
In terms of stock exchange performance, the Egyptian Exchange (EGX30) emerged as the top performer in the Mena region with an 8 percent gain during Q1 2024, followed by Boursa Kuwait Premier Market with 7.5 percent and Dubai Financial Market (DFM) with 4.6 percent. Eight out of the 10 Mena IPOs saw a positive return compared to their IPO price, with MBC Group achieving the highest gain of 128 percent. Brad Watson, EY Mena Strategy and Transactions Leader, highlighted the positive start to the year with a focus on GCC region IPOs and a strong pipeline of companies looking to list in the near future.
Saudi Arabia continued to lead in IPO activity in Q1 2024, with the country’s largest IPO being raised by Modern Mills Company at $724 million. This accounted for 27.3 percent of the overall IPO proceeds, followed by MBC Group with $222 million and Middle East Pharmaceutical Industries Company with $131 million. The remaining six listings took place on the Nomu – Parallel Market with total proceeds of $57 million. KSA also led in pipeline activity with companies like Saudi Manpower Solutions Company (SMASCO), Miahona, and Panda Retail Company planning to list.
The United Arab Emirates saw the region’s largest IPO in Q1 2024, with Parkin Company PJSC raising $0.4 billion on DFM, contributing 37.2 percent of the total IPO value. This IPO was oversubscribed 165 times and had the highest first-day gain among the quarter’s listings at 35 percent. Significant upcoming listings in the UAE include Spinneys, Lulu Group, and Etihad Airways. The UAE has also implemented mandatory ESG reporting guidelines for listed companies on Abu Dhabi Securities Exchange (ADX) to enhance transparency and promote sustainable practices in the region’s financial markets.
The growing prominence of ESG factors in the Mena region is evident through initiatives like the Saudi Green Initiative, which aims to plant 10 billion trees by 2030 and transition towards renewable energy sources. By embracing ESG reporting, the GCC region can unlock sustainable growth, attract responsible investments, and contribute to a greener global economy. Gregory Hughes, EY Mena IPO Leader, pointed out the strong start to the year with no signs of slowdown in IPO activity, highlighting the successful listing of Parkin Company PJSC on DFM as a significant step towards economic diversification and privatisation in the UAE.
