MENA IPO EYE Q4 2024

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 concluded Q4 2024 with a remarkable surge in activity, witnessing 25 IPOs that collectively raised US$7.9b in proceeds, marking a significant 59.4% increase from the Q4 2023. Performance for the quarter was strengthened by major listings such as Talabat Holding plc on the Dubai Financial Market (DFM) and OQ Exploration & Production on the Muscat Stock Exchange (MSX), each raising US$2.0b and significantly contributing to the overall proceeds. There was a total of 54 IPOs (a 12.5% y-o-y increase) in the MENA region during 2024, raising US$12.6b, a 17.6% increase in funds raised y-o-y.

The Kingdom of Saudi Arabia (KSA) led the number of listings with 17 out of 25 in Q4 2024, collecting US$1.2b in proceeds. The Tadawul Main Market hosted five IPOs, while the Nomu market accounted for the remaining 12. The UAE also saw notable activity with Lulu Retail Holdings PLC and ADNH Catering PLC listing on the Abu Dhabi Securities Exchange (ADX), and Mair Group opting for a direct listing. The MENA stock exchanges presented a mixed performance, with the DFM emerging as the top performer with a 27.1% gain. The EGX30 in Egypt ended the year 2024 strongly with a 19.5% gain, despite the Egyptian pound devaluing by 64.0% against the US dollar. In terms of IPO performance, 11 out of the 25 IPOs in Q4 2024 offered a free float of over 30% of their share capital. First-day returns were varied, with 12 out of 25 listings for Q4 2024 registering a gain versus the offer price of the Q4 2024 listings.

In 2024, capital market of Egypt welcomed listings from The United Bank and Act Financial on the EGX. Looking ahead to 2025, a strong lineup of companies, such as Ahli United Bank and Tabarak Developments, are poised to join the market, signaling a vibrant period for Egyptian IPOs. The Egyptian economy is projected to grow by 4.1% in GDP in 2025, despite an anticipated continued depreciation of the Egyptian pound. Additionally, the non-GCC nations, including Algeria, are showing a positive trend with companies planning to go public, indicating a strengthening of financial markets in the region.

Despite the ongoing challenging geopolitical environment in the MENA region, the outlook for MENA IPOs in 2025 remains positive, with 38 companies and 22 funds intending to list on MENA exchanges across a variety of sectors. Among the GCC countries, the KSA continues to lead with 27 companies, followed by the UAE and Qatar. Notable companies such as Etihad Airways PJSC, Amanat Holdings and Panda Retail Company are among those considering IPOs.

The region's commitment to environmental, social, and governance (ESG) goals is evident, with the UAE introducing a law effective May 2025 that mandates carbon emissions reporting and encourages decarbonization strategies. This aligns with the UAE's net zero goals for 2050 and is expected to influence IPO market dynamics as companies prioritize sustainability to attract investors.