EY MENA IPO and Transaction Diligence Leader, Gregory Hughes
Doha, Qatar: According to the EY MENA IPO Eye Q4 2023 report, MENA markets saw 48 initial public offerings (IPOs) in 2023,raising $10.7b in total. Five listings, mainly in the energy and logistics sectors, contributed 58% towards the total IPO proceeds raised.
During Q4 2023, 19 IPOs raised $4.9b in proceeds. ADES Holding Company raised the most funds and contributed 25% of the overall IPO proceeds in the last quarter, followed by Pure Health Holding PJSC with 20%.All Q4 listing activity took place in the GCC region, with Egypt being the only non-GCC country that reported IPOs throughout 2023.
Investor confidence in the region continues, with 11 out of the 19 Q4 2023 IPOs recording a first-day gain in share price. At the end of 2023, 26 out of the 48 IPOs showed a positive return compared to their listing price, with Armah Sports Company achieving the highest gain at 72%.
Last year recorded a 6% decrease in the number of IPOs and a 51% drop in proceeds, compared to 2022.Notably, 2022 witnessed a significant number of IPOs, such as Americana Restaurants International PLC (Americana), Saudi Aramco Base Oil Company (Luberef) and Arabian Drilling Company, which played a role in the decline seen in 2023.
The 2024 pipeline includes 29 companies across various sectors announcing their intention to list, with the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) leading the way in terms of expected volumes. Outside the GCC, Egypt has four IPOs planned.
Brad Watson, EY MENA Strategy and Transactions Leader, says: “In 2023, there were a total of 48 IPOs raising US$10.7b, of which five listed companies contributed 58% toward the total IPO proceeds raised, mainly in the energy and logistics sectors. Investor confidence in the region continues with 11 out of the 19 Q4 2023 IPOs recording a first day gain in share price.
The 2024 pipeline includes 29 companies across various sectors, announcing their intention to list with the KSA and the UAE leading the way in terms of expected volumes.”
Gregory Hughes, EY MENA IPO and Transaction Diligence Leader, says: “The MENA IPO market delivered a healthy number of IPOs across various sectors in 2023, despite the subdued global economic backdrop and the rising geopolitical tensions in the Middle East. A number of reputable large state-owned companies listed in 2023, including the Dubai Taxi Co and OQ Gas Networks.
As expected, 2024 started off positively with the MBC listing, Avalon Pharma and the announcements of several IPOs on the MENA markets including large private and state-owned names.”
