Capital markets in the GCC are in for a solid 2025, with EFG Hermes particularly bullish on the IPO outlook for Saudi Arabia and the UAE, Ali Khalpey, the investment bank’s head of equity capital markets, told Zawya. The bank sees more consumer-focused companies hitting the market this year, supported by a rally in activity from both private and government players in 2Q 2025.

Tadawul is looking at more private sector engagement and mid-sized IPOs this year, following some of 2024’s more high-profile listings including Nice One, Fakeeh Care, and Miahona. “I think, given the domestic liquidity in Saudi, transaction sizes could be from as small as USD 175 mn to as much as USD 2 bn … Though there may not be mega IPOs this year, we will certainly see shares sales worth USD 500 mn to USD 1 bn,” he said, describing Tadawul as the “most mature” market in the MENA region.

IN CONTEXT- Our friends at EFG Hermes Saudi Arabia are planning to quarterback sevenIPOs on the Saudi Exchange this year, in sectors including education, healthcare, retail, and F&B. A recent report by Kamco Invest found that the Kingdom has 31 listings in the pipeline for 2025, 26 of which are announced, while another four are mandated and one is rumored. These include the PIF’s Saudi Global Ports, Nupco, Tabreed District Cooling, Flynas, Tabby, and Ejada Systems.

From the region: High-pricing and upsizing may be weighing on Emirati IPOs, as several offerings in 2024, including Spinneys, Lulu Retail and Talabat, stumbled on their debut due to aggressive pricing and last minute upsizing. According to Khalpey, these factors may have dampened investor sentiment. “Pricing is an art,” he said, stressing the importance of aligning valuation expectations with market demand.

Last year was a banner year for IPOs in the region. EFG Hermes helped raise a total of USD 7.2 bn from some 11 IPOs on Tadawul, ADX, DFM and Boursa Kuwait last year, and USD 12.5 bn from six secondary offerings. The firm played a part in major transactions, including Aramco’s USD 11.2 bn secondary offering — the largest follow-on offering in the GCC. It also acted as a joint bookrunner for Miahona’s USD 148 mn IPO and facilitated the USD 2 bn divestment of Delivery Hero’s stake, which stood out as the largest UAE IPO of the year.

EFG Hermes came in first place in the Mena ECM underwriting league table in 2024, with a 9.6% market share, while HSBC Holdings came in second (7.9%) and Goldman Sachs followed with a 7% market share, according to LSEG.

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