• The MENA region’s IPO market raised $2.64 billion in Q2 2024, reflecting a 206% increase from the previous month and a 260% rise year-on-year.
• Saudi Arabia dominated with 11 out of 14 IPOs, securing $1.6 billion. Notable listings include Dr. Soliman Abdul Kader Fakeeh Hospital Co., raising $764 million, and Alef Education Consultancy in the UAE, which raised $515 million.
• Positive market conditions, including higher oil prices and economic recovery, have buoyed IPO activity. The pipeline for H2 2024 remains robust, with 14 Saudi companies planning to list by year-end.

IPO activity in the Middle East and North Africa (MENA) region demonstrated significant growth in the second quarter of 2024, with 14 initial public offerings (IPOs) raising a total of $2.64 billion.

This marks a notable 206% increase from the previous month and a 260% rise compared to the same period last year, according to the EY MENA IPO Eye Q2 2024 report.

Among the standout listings, Soliman Abdul Kader Fakeeh Hospital Co. led the way, raising $764 million and contributing 29% of the total IPO proceeds for the quarter. The Abu Dhabi Securities Exchange (ADX) also saw significant contributions from Alef Education Consultancy, which raised $515 million, accounting for 19.5% of the total funds raised.

Brad Watson, EY MENA Strategy and Transactions Leader, commented, “Whilst the Middle East and North Africa (MENA) equity markets continue to face challenges, Q2 2024 was a stronger quarter with a total of 14 IPOs raising $2.6 billion. Eleven of the companies listed were in the KSA region (five of which were on the Tadawul main market). The most significant fundraiser was by Soliman Abdul Kader Fakeeh Hospital Co. ($764 million).”

Watson further noted,“Increased liquidity driven by higher oil prices, economic recovery, and positive market sentiment has kept the IPO activity in the region buoyant with a strong pipeline for the second half (H2) 2024.”

The quarter also saw eight out of the 14 MENA IPOs showing positive returns as of June 30, 2024, with Miahona Company achieving the highest gain of 90.4%. Stock exchanges across the MENA region had varied performances, with the MSCI Emerging Markets Index ending Q2 2024 with a 4.2% gain, making it the top performer in the GCC, followed by a 1% increase in the Qatar Exchange (QE) general index.

Saudi Arabia continued to dominate the regional IPO market, leading with 11 out of the 14 listings and raising $1.6 billion. The top contributors included Soliman Abdul Kader Fakeeh Hospital Co. at $764 million, Saudi Manpower Solutions Company (SMASCO) at $240 million, and Rasan Information Technology Company at $224 million.

Of these, five IPOs were listed on the Tadawul main market, including the top three contributors, while the remaining six were listed on the Nomu market, collectively raising $85.4 million.

Saudi Arabia also leads in IPO pipeline activity, with 14 companies planning to list by the end of the year. The UAE’s Alef Education Consultancy and Spinneys 1961 Holding raised $515 million and $375 million, respectively, contributing 33.8% of the quarter’s total proceeds. Additionally, Beyout Investment Group (BIG) Holding Co. in Kuwait raised $147 million, marking the first listing in Kuwait since Q4 2019.

Gregory Hughes, EY MENA IPO Leader, remarked, “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.

“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 healthcare, 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.”