MENA IPO EYE Q2 2025

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.

The MENA IPO market in Q2 2025 saw a slight decrease in proceeds compared to same quarter of the previous year, with 14 IPOs raising US$2.5b, a 6.2% drop from Q2 2024. The standout IPO was Flynas company on the Tadawul Main Market, which raised US$1.1b, accounting for 44.2% of the total proceeds. Dubai Residential REIT raised US$584m on the Dubai Financial Market (DFM), contributing 23.6% of the quarter's total proceeds. Despite the number of IPOs remaining unchanged at 14, the total proceeds increased slightly from US$2.4b in Q1 2025 to US$2.5b (4%).

The KSA led the region with 13 out of the 14 listings, raising a total of US$1.9b. Other than Flynas, notable IPOs included Specialized Medical Company and United Carton Industries Company, which raised US$500m and US$160m, respectively, on the Tadawul Main Market. The remaining 10 IPOs were launched on the Nomu Parallel Market, collectively raising US$136m. The IPO’s were distributed across various sectors, with the transportation and health care sectors being the significant contributors. They accounted for 44% and 21% of the total proceeds respectively.

Looking ahead, the MENA IPO market appears resilient, with 14 companies planning to list on MENA exchanges across various sectors. Among non-GCC countries, Egypt and Tunisia have companies preparing for IPOs, with Morocco's Vicenne already listed on the Casablanca Stock Exchange (CSE). The nature of IPO proceeds shifted notably in Q2 2025, with a decline in primary listings and combination listings, while secondary listings dominated. This trend suggests a cautious capital-raising environment, with issuers favoring liquidity events over fresh equity issuance.

The MENA capital markets continue to evolve, with the UAE introducing Internal Control Over Financial Reporting (ICFR) regulations to enhance transparency and internal controls. The Securities and Commodities Authority (SCA) has also emphasized robust internal control and risk management, reinforcing the UAE's efforts to build confidence in its financial markets and attract investments.

Despite geopolitical challenges, IPO activity in the region remains resilient, with companies strategically timing their market entries. Foreign investor inflows into Saudi and UAE equities remained strong, even as overall GCC trading values edged lower. The Boursa Kuwait Premier Market Index led regional gains, while the Tadawul All Share Index was the worst performer due to falling oil prices and concerns about slower spending on mega-projects. Oil prices fluctuated significantly in Q2 2025, influenced by geopolitical tensions and changes in supply and demand dynamics. The outlook for H2 2025 suggests a continued surplus in the global crude market, with oil prices expected to remain between US$60 and US$70 per barrel.

Overall, the MENA IPO market remains cautiously optimistic, with a strong pipeline of companies preparing to go public, driven by strategic considerations and evolving market conditions.