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MENA IPO EYE Q4 2023
MENA IPO markets saw 19 IPOs during Q4 2023, raising US$4.9b in proceeds. During this period, the proceeds raised decreased by 32%, while the number of IPOs decreased by 5% as compared with Q4 2022.
The MENA IPO Eye report analyzes IPO activities in the MENA region on a quarterly basis. It compares deals and volume to previous quarters, highlights recent developments, and notes key changes to regulations.
In Q4 2023, MENA IPO markets saw 19 IPOs raising US$4.9b in proceeds, representing a 5% decrease in the number of IPOs and a 32% decrease in proceeds compared with Q4 2022. There were 48 IPOs (a 6% y-o-y decrease) in MENA during 2023, raising US$10.7b, a 51% decrease in funds raised y-o-y.
The Kingdom of Saudi Arabia (KSA) dominated the region’s IPO activity in terms of the number of listings (14 out of 19) in Q4 2023, with the highest proceeds from ADES Holding Company (US$1.2b) followed by SAL Saudi Logistics Services Company (US$0.7b) which were listed on the Tadawul. The remaining 12 IPOs took place on the Nomu Market (total proceeds of US$140m). In 2023, the IPO funds raised in KSA have come from a variety of sectors, with the dominating sectors being: Energy (36%), Transportation (29%) and Health care (10%).
Despite the challenging geopolitical environment in MENA, the outlook for MENA IPOs in 2024 remains positive, with MBC Group listing on the Tadawul on 8 January 2024 raising US$222m and Avalon Pharma listing on Tadawul on 24 January 2024 raising US$437m. An additional 29 private companies and 26 funds intend to list on the MENA exchanges from a variety of sectors. Among the GCC countries, the KSA remains the leader, with 19 companies, followed by five in the UAE and one in Kuwait (intending to list on the Tadawul). Additionally, outside the GCC, Egypt has announced four IPOs.
The global IPO market in 2023 has experienced some noticeable shifts. Overall IPO proceeds in 2023 lag 2022's lukewarm pace by roughly a third, although deal volumes have picked up in both the Americas and EMEIA regions. Globally, moderating inflation and potential 2024 interest rate cuts could attract investors back to IPOs by improving liquidity and return outlooks. However, sustained geopolitical instability may undermine confidence.