KSA is leading the region’s IPO market: Five of the six IPOs in the region in 3Q 2023 were in Saudi Arabia, according to a report (pdf) by Ernst & Young (EY) released on Tuesday. All together, the IPOs have raised USD 330 mn, including Saudi rental car firm Lumi that raised USD 290 mn in its September IPO.

That’s just the start, say Saudi companies: There are currently 27 companies that have announced their intention to list their companies on the Tadawul. Saudi has also already seen three listings in 4Q 2023, including an IPO by regional oil and gas giant ADES holding, whose shares leapt 30% in the first day of trading.

The region clocked in 29 IPOs by the end of 3Q, but we’re still behind on the same period last year: In the first nine months of the year, a total of 29 IPOs have raised some USD 5.6 bn, down 61% from the same period last year. However, investor confidence is strong according to EY strategy and transactions leader Brad Watson, who pointed to 21 out of the 29 IPOs in 3Q 2023 ending with a “gain in share price performance since listing.”

EGX30

23,987

+2.5% (YTD: +64.3%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

10,929

-0.2% (YTD: +4.3%)

ADX

9,546

-0.1% (YTD: -6.5%)

DFM

3,965

-0.6% (YTD: +18.9%)

S&P 500

4,383

+0.1% (YTD: +14.2%)

FTSE 100

7,402

-0.1% (YTD: -0.7%)

Euro Stoxx 50

4,178

+0.6% (YTD: +10.2%)

Brent crude

USD 79.54

-2.5%

Natural gas (Nymex)

USD 3.11

-1.1%

Gold

USD 1,957.80

-0.8%

BTC

USD 35,854

+1.5% (YTD: +117%)

THE CLOSING BELL-

The EGX30 rose 2.5% at yesterday’s close on turnover of EGP 4.1 bn (64.4% above the 90-day average). Local investors were net sellers. The index is up 64.3% YTD.

In the green: Credit Agricole (+7.1%), CIB (+6.9%) and ADIB (+5.9%).

In the red: Orascom Construction (-2.9%), Fawry (-2.7%), and Palm Hills Development (-2.6%).

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