MENA IPO EYE Q1 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.

In Q1 2024, MENA IPO markets saw 10 IPOs raising US$1.2b in proceeds, representing a 66% decrease in proceeds despite having the same number of IPOs when compared with Q1 2023.

The Kingdom of Saudi Arabia (KSA) dominated the region’s IPO activity with nine out of 10 listings in Q1 2024 raising US$724m. The highest proceeds were from Modern Mills (US$314m) followed by MBC Group (US$222m) and Middle East Pharmaceutical Industries Company (US$131m) which were listed on Tadawul. The remaining six IPOs took place on the Nomu (total proceeds of US$57m). In 2024, in the KSA the IPO activity spanned across a variety of sectors, such as health care, food and beverages, and media and entertainment and we expect to see this continued trend.

Despite the ongoing and challenging geopolitical environment in MENA, there has not yet been any sign of a slowdown in IPO activity. An additional 25 private companies and 10 funds intend to list on the MENA exchanges in 2024, across various sectors. The KSA leads with 21 announced IPOs followed by one company in the United Arab Emirates (UAE). Additionally, outside GCC, Egypt and Algeria have announced one IPO each.

In Q1 2024, the international IPO landscape has undergone notable changes. The total IPOs proceeds worldwide reached US$23.7b, marking a 7% y-o-y increase in funding. However, the activity by number of IPOs displayed a 7% y-o-y decline, weighed down by the usually active Asia-Pacific region. The current climate of economic volatility, rising geopolitical tensions and a global election year are posing challenges for market players as they attempt to navigate through these uncertainties.