(MENAFN- The Peninsula)
The Peninsula
DOHA: According to the EY MENA IPO Eye Q3 2024 report, listings in the MENA region marked a significant year-on-year (YoY) increase in value at 76.8 percent.
The third quarter saw five IPOs in the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE) and Egypt with combined proceeds of
$0.93b.
While the global IPO market overall experienced a mild slowdown during Q3 2024, the MENA market is still exhibiting a strong IPO pipeline.
An additional 11 private companies across various sectors as well as five funds intend to list on the MENA exchanges by the end of this year.
Gregory Hughes (pictured), EY MENA IPO Leader, says:“The third quarter of the year is typically quieter in terms of listing activity after the summer. However, the MENA region still witnessed five IPOs, including the first listing on the EGX since 2022. Saudi Arabia continues to lead IPO activity in the region. The Tadawul Nomu – Parallel Market has become an attractive option, offering improved fundraising opportunities for the Kingdom's growing SME sector. For the MENA region, it is now the stock exchange with the highest number of IPOs in 2024.”
Once again, KSA was the frontrunner in listing activity in the third quarter of this year with three IPOs out of five with a total fundraise of US$27m.
The highest proceeds – $12m – belonged to Tharwah Human Resources Company, followed by ASG Plastic Factory Company with US$9m and Al Ashghal Almoysra Company with US$6m. All three IPOs were listed on the Nomu – Parallel Market. The funds have been raised in the commercial and professional services as well as materials sectors. The Kingdom also witnessed two direct listings on the Nomu – Parallel Market, the Naas Petrol Factory Company and the Arabian United Float Glass (UFG) Company.
In the GCC, notable companies that have made announcements regarding their listing plans include LuLu Group International on the Abu Dhabi Securities Exchange (ADX), Talabat Middle East FZ LLC on the Dubai Financial Market (DFM) and OQ Exploration & Production LLC on the Muscat Stock Exchange (MSX).
In KSA, Tamkeen Human Resources Company, Arabian Company for Agricultural and Industrial Investments and Nice One Beauty Digital Marketing Co. have obtained approval from the Capital Market Authority (CMA).
In terms of MENA stock exchange performance, the Egyptian Exchange (EGX30) retained its top position during the third quarter of 2024 with a 26.8% increase from the beginning of the year.
Meanwhile, the MSCI Emerging Markets Index closed Q3 2024 with a gain of 14.3% compared to the beginning of the year, making it the highest-performing market in the GCC. At the end of the quarter, four out of the five MENA IPOs showed a positive return compared to their IPO price.
Brad Watson, EY MENA Strategy and Transactions Leader, says:“In Q3 2024, companies raised proceeds of US$0.93b, which was 76.8% higher than prior year – primarily driven by the $877m fundraise of NMDC Energy PJSC through its listing on the Abu Dhabi Securities Exchange (ADX). Despite the ongoing and challenging geopolitical environment in the MENA region, the IPO pipeline remains robust. We can expect to see a number of IPOs in the final quarter across a variety of sectors.” In the UAE, ADX welcomed the largest offering of the quarter in the MENA region with NMDC Energy PJSC, which specializes in EPC solutions and marine construction, raising US$877m and contributing 94.8% of the overall IPO proceeds.
The final quarter of the year is already off to a strong start, with Al Majed for Oud Company SJSC and Arabian Mills for Food Products Company listed on the Tadawul Main Market, and First Avenue for Real Estate Development Company listed on the Nomu – Parallel Market.
The third quarter of 2024 recorded MENA's first IPO of the year outside the GCC with the Act Financial listing on the Egyptian Exchange (EGX). The first listing on the EGX in the last two years achieved the highest gain in the region at 16.3%.
MENAFN08112024000063011010ID1108864990
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.