Saudi Arabia led the regional IPO chart in 1Q -EY

MENA markets raised USD 2.4 bn in IPO proceeds across 14 listings last quarter, up from just 10 in 1Q 2024, marking a 106% increase in proceeds, according to EY’s MENA IPO eye report (pdf). IPO activity was heavily concentrated in Saudi Arabia, with only one listing in the UAE, and another in Oman. Despite the narrow distribution and global market jitters, EY sees the region’s IPO pipeline remaining intact.

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KSA tops the charts: The Kingdom was home to 12 out of the 14 IPOs in the region last quarter, raising roughly USD 1.9 bn in proceeds across five main market listings and nine on Tadawul’s parallel market Nomu. Saudi real estate company Umm Al Qura for Development was the region’s highest grossing IPO in 1Q, contributing 22% to overall proceeds from the region, followed by hospital operator Almoosa Health (19%). The largest contributions came from real estate management (28%), health care equipment and services (24%), financial services (21%), and consumer discretionary distribution and retail (17%).

Meanwhile, the UAE saw one IPO in 1Q. The Abu Dhabi Exchange (ADX) was home to the UAE’s first and only IPO so far this year. Software company Alpha Data took a 40% stake to market in March, raising USD 163 mn.

Oman was the only other IPO contributor in the region last quarter. The LNG transport unit of state-backed logistics giant Asyazd Group Asyad Shipping ’s debut of a 20% stake on the Muscat Exchange raised USD 333 mn.

Top performing IPOs: Eleven stocks closed higher on their trading debut, with six — including Umm Al Qura for Development & Construction, Arabian Company for Agricultural and Industrial Investments (Entaj), and Derayah Financial — hitting the 30% daily limit set by regulators. 11 out of 14 IPOs were trading above their IPO prices as of 31 March. Umm Al Qura for Development & Construction posted the strongest performance, with a gain of 60%, followed by Riyadh-based Basma Adeem Medical Company, which recorded a 50% increase.

EY expects more IPO activity from tech firms this year: “In 2025, we can potentially expect to see an increase in IPOs from the technology sector including online retail, fintech, foodtech and classifieds,” the firm’s MENA IPO leader Gregory Hughes said.

What’s in the pipeline? EY says at least 21 more companies are expected to go public across MENA markets this year. Saudi Arabia continues to dominate the pipeline, with 17 firms already cleared by the CMA, while the UAE has three announced IPOs in the works, and Egypt has announced one, the report reads.

MENA stock exchanges delivered mixed results last quarter, with three posting gains and six ending the quarter in negative territory. Boursa Kuwait’s Premier Market Index led regional performance with a strong 10.7% gain, followed by the EGX30, which rose 8%. In contrast, Saudi Arabia’s Tasi recorded a marginal decline of 0.4%. On the weaker end of the spectrum, the MSM General Index in Oman posted the steepest drop, falling 4.6%, while the Qatar Exchange General Index declined 3.2% over the same period.

THE CLOSING BELL-

The EGX30 fell 0.2% at Thursday’s close on turnover of EGP 5.9 bn (30.9% above the 90-day average). Regional investors were the sole net sellers. The index is up 6.8% YTD.

In the green: Beltone Holding (+2.2%), Qalaa Holdings (+1.1%), and Emaar Misr (+1.0%).

In the red: Orascom Development Egypt (-2.1%), Egyptalum (-2.1%), and Palm Hills Development (-1.6%).