IPO activity in the MENA region remained strong in the second quarter of 2024, with 14 IPOs raising $2.64 billion in proceeds. The number of IPOs increased compared to the same period in 2023, with a 45.3 percent increase in proceeds. Dr. Soliman Abdul Kader Fakeeh Hospital Co. raised the highest proceeds of the quarter at $764 million. Saudi Arabia led the regional IPO market with 11 listings out of the 14 in Q2 2024, raising a total of $1.6 billion.
The UAE also made significant contributions to the IPO activity, with Alef Education Consultancy raising $515 million on the Abu Dhabi Securities Exchange. The remainder of 2024 is expected to see robust activity in the IPO market, with 16 private companies and seven funds across various sectors intending to list on MENA exchanges. Overall, the MENA region witnessed IPO listings from a variety of sectors, including healthcare, education, consumer goods, and professional services.
Globally, IPO activity declined in Q2 2024 compared to the previous year, with a decrease in both the number of IPOs and proceeds. However, the EMEIA region saw a remarkable comeback, regaining the top global IPO market share by number and value for the first time in 16 years. Additionally, the adoption of International Financial Reporting Standards sustainability disclosure standards marked a significant step towards integrating sustainability reporting into the financial reporting process in the Mena region.
The MENA region is expected to see continued IPO activity in the second half of 2024, driven by increased liquidity, economic recovery, and positive market sentiment. Companies in Saudi Arabia, the UAE, and Kuwait are gearing up to list on various stock exchanges in the region, with a focus on economic diversification away from oil and gas. The region continues to attract listings from a variety of sectors, indicating a growing interest in investing in the MENA region’s capital markets.
Overall, the IPO market in the MENA region remains resilient, with strong performance in Q2 2024 despite global economic challenges. The region’s focus on economic diversification, sustainability reporting, and a diverse range of sectors contributing to IPO activity bodes well for continued growth and development in the capital markets of the MENA region.
