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Hi Dubai
11-02-2025
- Business
- Hi Dubai
MENA IPOs Hit $12.6 Billion in 2024, Marking a Record Year
The MENA region experienced a remarkable surge in IPO activity in 2024, with 54 IPOs raising $12.6 billion, according to the EY MENA IPO Eye Q4 2024 report. This reflects a 12.5% increase in the number of IPOs and a 17.6% rise in proceeds compared to 2023, positioning the region as a global leader in capital markets. Q4: A Record-Breaking Quarter The fourth quarter of 2024 was a standout, with 25 IPOs generating $7.9 billion, representing a 32% increase in listings and a 59.4% surge in proceeds compared to Q4 2023. Key IPOs in Q4 included: Talabat Holding plc (Dubai Financial Market) raised the highest proceeds, contributing 25.8% of Q4 funds . (Dubai Financial Market) raised the highest proceeds, contributing . OQ Exploration & Production (Oman) raised $2 billion, marking the largest IPO in Oman's history. (Oman) raised $2 billion, marking the largest IPO in Oman's history. Other notable listings included Lulu Retail Holdings and Morocco's CMGP. Saudi Arabia: Dominating the Region Saudi Arabia led the region with 17 IPOs in Q4, raising $1.2 billion, driven by: Arabian Mills for Food Products Company and United International Holding Company, each raising $300 million. The kingdom's IPOs spanned diverse sectors, including commercial services, materials, food and beverages, and healthcare. UAE: Strong IPO Performance and ESG Focus The UAE continued its momentum with four new IPOs in Q4, including: Lulu Retail Holdings PLC (ADX), raising $1.7 billion. (ADX), raising $1.7 billion. Talabat Holding plc, contributing $2 billion on the DFM. The UAE also introduced a law requiring businesses to report carbon emissions starting May 2025, encouraging sustainability and aligning IPO market dynamics with net-zero 2050 goals. 2025 Outlook: Sustained Growth Expected The MENA IPO market shows no signs of slowing. EY forecasts 38 companies and 22 funds will list in 2025, with Saudi Arabia leading the pipeline with 27 IPOs, followed by the UAE and Qatar. High-profile IPOs in 2025 may include Etihad Airways, Amanat Holdings, Panda Retail Company, and Riyad Capital. Building a Stronger Market MENA exchanges are focusing on: Promoting family-owned businesses and SMEs . and . Strengthening capital markets infrastructure . . Launching initiatives like the DFM's Arena platform to boost liquidity and attract investors. Brad Watson, EY MENA strategy and transactions leader, noted: '2024 marked the highest number of IPOs in MENA in seven years. With robust governance and sustainability initiatives, the region will continue to attract global investors and remain a key player in the IPO landscape.' The MENA IPO market's growth reflects the region's ability to innovate, adapt, and lead, setting the stage for another record-breaking year in 2025. News Source: Gulf Business
Gulf Business
11-02-2025
- Business
- Gulf Business
54 IPOs raised $12.6bn in 2024 in MENA region, shows report
Image: Getty Images The Middle East and North Africa (MENA) region saw a notable surge in initial public offerings (IPOs) in 2024, with 54 listings raising a total of $12.6bn, according to the EY MENA IPO Eye Q4 2024 report. This marks a 12.5 per cent increase in the number of IPOs and a 17.6 per cent rise in proceeds compared to the previous year. Q4 Surge: 32 per cent more IPOs, 59 per cent higher proceeds According to the The spike in proceeds was driven by high-value IPOs such as Talabat Holding plc, OQ Exploration & Production, and Lulu Retail Holdings, which listed during the final quarter of the year. Talabat, which went public on the Dubai Financial Market (DFM), raised the largest amount of proceeds in Q4, contributing 25.8 per cent of the total quarterly funds. The second-largest IPO came from OQ Exploration & Production, which raised $2bn in the largest-ever IPO in Oman. Together, these two listings accounted for nearly half of the total Q4 proceeds. Outside the GCC, Morocco's Compagnie Marocaine de goutte a goutte et de pompage (CMGP) and Egypt's United Bank also made their market debuts during Q4. Saudi Arabia leads the pack with 17 listings in Q4 Saudi Arabia continues to dominate the region's IPO activity. In Q4 2024, the kingdom accounted for 17 of the 25 IPOs, raising a total of $1.2bn. Of these, five listings took place on the Tadawul Main Market, collectively raising $1.1bn. The highest proceeds came from Arabian Mills for Food Products Company and United International Holding Company, each raising $300m. In total, IPO activity in Saudi Arabia was driven by a diverse range of sectors, including commercial and professional services (20 per cent), materials (12.5 per cent), food and beverages (10 per cent), and healthcare (10 per cent). UAE's robust performance and ESG focus The UAE saw strong IPO activity as well, with four new listings during Q4 2024. On the Abu Dhabi Securities Exchange (ADX), Lulu Retail Holdings PLC raised $1.7bn and ADNH Catering PLC raised $235m. Additionally, the DFM welcomed Talabat Holding plc, which raised $2bn, continuing the trend of high-value listings in the region. As the UAE moves toward its net-zero 2050 target, the country has also introduced a law requiring businesses to report carbon emissions, starting in May 2025. The law aims to encourage companies to adopt decarbonisation strategies, including renewable energy and carbon offsetting. This emphasis on sustainability is expected to play a key role in shaping IPO market dynamics as companies align with the UAE's environmental goals. Positive outlook for 2025 IPOs in MENA region Looking ahead, the MENA IPO market is poised for continued growth. EY's Gregory Hughes, IPO and transaction diligence leader, noted that Q4 2024 accounted for 46 per cent of the total IPO activity in the region for the year, underscoring the strong momentum. Saudi Arabia's Nomu Parallel Market remains a key driver, accounting for 50 per cent of Q4 listings. In 2025, 38 companies and 22 funds are expected to list across the region's exchanges. Among the GCC countries, Saudi Arabia leads with 27 companies in the pipeline, followed by the UAE with three and Qatar with one. Companies such as The MENA IPO market is expected to remain a key player globally as regional exchanges continue to innovate and attract investors with strong governance and sustainability initiatives. Brad Watson, EY MENA strategy and transactions leader, says: 'The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market. The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. 'In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity. The market is also anticipating the Arena platform from the DFM, which is expected to launch in 2025.' Read:
