Emerging markets like Malaysia and Oman have outperformed London — and European markets — in IPO activity this year, underscoring the rise of Middle Eastern and Asian exchanges as global IPO hubs, Bloomberg reports. The UAE, Oman, and Malaysia have secured higher rankings in Bloomberg’s global IPO venue list, with the UK landing the 20th place, while Oman secured the 14th spot, Saudi Arabia the 7th, and the UAE the highest at fifth globally. This marks a significant shift from London’s heyday as a staple IPO market.

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Middle East IPOs are thriving: The Middle East and Asia accounted for over half of global IPO IPO proceeds in 2024. Notable listings include Abu Dhabi-based Lulu Retail’s USD 1.7 bn offering and a USD 2 bn IPO by a unit of Oman’s state oil company. Dubai’s Talabat also completed a USD 2 bn IPO, now the world’s largest tech IPO of 2024.

London’s woes: London’s IPO market declined by 9% y-o-y to USD 1 bn in 2024, with the number of London-listed firms falling to the lowest on record. Only about a dozen companies listed on the LSE this year, none among the global top 100, with the largest raising a modest GBP 150 mn. The UK’s performance has been undermined by low valuations, cautious domestic investors, and increasing competition from other financial hubs.

A lot of delistings are another symptom of a bigger problem: In addition to the shrinking IPO pipeline, the UK stock market has faced a wave of delistings and takeovers. Some 45 companies exited the London Stock Exchange this year, marking the highest tally since 2010 — including big names such as Just Eat Takeaway.com and Ashtead Group moving each to the Netherlands and the United States — and many medium-cap firms acquired by private equity giants like KKR and EQT.

Things may look up: UK authorities are implementing sweeping reforms to revive its listing market, including easing rules on dual-class shares and disclosures. Several companies, including Shein and Canopius Group, are reportedly preparing to list in 2025. However, experts suggest that significant momentum is required to restore investor confidence and make the UK competitive again.

EGX30

30,795

+0.2% (YTD: +24.7%)

USD (CBE)

Buy 50.77

Sell 50.91

USD (CIB)

Buy 50.8

Sell 50.9

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,099

-0.4% (YTD: +1.40%)

ADX

9,265

-0.1% (YTD: -3.3%)

DFM

4,830

+0.4% (YTD: +19.0%)

S&P 500

6,051

0.0% (YTD: +26.9%)

FTSE 100

8,300

-0.1% (YTD: +7.3%)

Euro Stoxx 50

4,968

+0.1% (YTD: +9.9%)

Brent crude

USD 74.49

+1.5%

Natural gas (Nymex)

USD 3.28

-5.1%

Gold

USD 2,676

-1.2%

BTC

USD 100,914

-0.4% (YTD: +139.0%)

THE CLOSING BELL-

The EGX30 rose 0.2% at Thursday’s close on turnover of EGP 4.5 bn (7.2% above the 90-day average). Egyptian investors were the sole net buyers. The index is up 23.7% YTD.

In the green: GB Corp (+4.4%), Juhayna (+2.0%) and Emaar Misr (+1.4%).

In the red: Ezz Steel (-1.4%), E-Finance (-1.2%) and EFG Holding (-1.2%).

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