Capital markets in the GCC are in for a solid 2025, with EFG Hermes particularly bullish on the IPO outlook for the UAE and Saudi Arabia, Ali Khalpey, the investment bank’s head of equity capital markets, told Zawya. “We have a very active pipeline built from last year to engage in 2025,” he said, adding that 2Q is expected to be particularly busy, with lots of consumer-focused companies set to hit both markets, following what is usually a quiet 1Q.

His take on the disappointing debuts of otherwise popular Emirati IPOs last year? Several UAE IPOs in 2024, including Spinneys, Lulu Retail and Talabat, stumbled on their debut. Khalpey does not seem too concerned, noting that while some of the IPOs were priced on the upper end of their valuation due to strong market demand, long-term investors will keep an eye on other indicators like dividends and share price appreciation.

REMEMBER- The UAE is expected to sustain a strong presence in the GCC’s IPO market in 2025, with three announced IPOs and another three rumored, according to an earlier report by Kamco Invest. Listings in the pipeline this year include ADQ’s Etihad Airways, Alpha Data, Dubizzle Group, Five Holdings, Amanat Holding’s education and healthcare units, along with construction firm Alec and shisha producer Advanced Inhalation Ritual.

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.

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