MENA IPO EYE Q3 2023

MENA IPO markets saw six IPOs during Q3 2023, raising US$523m in proceeds. During this period, the proceeds raised decreased by 66%, while the number of IPOs decreased by 14% as compared with Q3 2022.

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 Q3 2023, MENA IPO markets saw six IPOs raising US$523m in proceeds, representing a 14% decrease in the number of IPOs and a 66% decrease in proceeds compared with Q3 2022. This brings the total number of IPOs in MENA to 29, raising US$5.8b in funds. Despite the lower levels of proceeds from MENA IPOs y-o-y, the overall sentiment remains positive from an IPO pipeline standpoint.

This quarter saw Saudi Arabia dominating the region’s IPO activity with five out of the six listings coming from the country. Listed on the Tadawul main market, the highest proceeds came from Lumi Rental Co (US$291m). The Qatar Stock Exchange (QSE) saw one IPO — Meeza Qstp LLC — raising US$193m and becoming the second-largest MENA IPO of the quarter. The landmark IPO of OQ Gas Networks (OQGN) was heavily oversubscribed and the largest IPO for the Muscat Stock Exchange (MSX).

The outlook for the remainder of 2023 and into 2024 continues to be promising for MENA IPOs, with several prominent companies announcing their intention to list on MENA exchanges. A total of 27 KSA companies have announced their listing plans on the Tadawul. The UAE also expects sizeable listings from government and private companies including Dubai’s Roads and Transport Authority (RTA).

The stock exchanges in the region are doing their part in supporting ESG reporting and adoption in the backdrop of COP28. While some exchanges mandated their listed companies to report on ESG performance, several other exchanges have also published written guidance on ESG reporting.