Robust IPO activity in MENA region points to market resilience

(MENAFN) Ernst & Young's latest report reveals robust initial public offering (IPO) activity in the Middle East and North Africa (MENA) region during the first quarter of 2024, indicating a resilient market amidst global economic uncertainties. According to the report, both the UAE and Saudi Arabia markets experienced significant momentum, witnessing a combined total of 10 public offerings generating USD1.2 billion in revenues. This surge in IPO activity reflects a positive outlook despite recent economic fluctuations and the impact of global events such as election years.

Globally, the first quarter of 2024 saw a total of 287 public offerings, raising USD23.7 billion, marking a 7 percent increase in value compared to the previous year. Ernst & Young's analysis suggests that the MENA region's IPO activity underscores a collective effort by market participants to navigate through uncertainties and capitalize on emerging opportunities.

Looking ahead, Ernst & Young reports that approximately 25 private companies and 10 investment funds across various sectors are poised to list their shares in MENA markets throughout 2024. Saudi Arabia leads the region in planned public offerings, with 21 IPOs announced, followed by the UAE with one IPO. Additionally, companies beyond the Gulf Cooperation Council (GCC) countries, such as Egypt's Raya Information Technology Company and Algeria's Popular Credit Company, have also signaled their intentions to offer shares for public subscription.

In terms of market performance, the Egyptian Stock Exchange emerged as the top performer in the MENA region, registering gains of 8 percent during the first quarter of 2024. Following closely, the Kuwait Stock Exchange's first market saw growth of 7.5 percent, while the Dubai Financial Market experienced a 4.6 percent increase. These positive trends underscore the resilience and attractiveness of MENA markets for investors, highlighting the region's potential for sustained growth and investment opportunities in the coming months. 



Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.