IPOs in the region raised some USD 2.5 bn in the second quarter of the year, spread across 14 transactions, according to EY’s latest MENA IPO Eye report (pdf). The marginal 6.2% quarter-on-quarter decrease in proceeds in the face of global economic uncertainty and geopolitical tensions shows that “MENA capital markets demonstrate continued resilience, although marked by caution,” according to EY-Parthenon MENA Leader Brad Watson.

Like the quarter before — and pretty much every quarter before that — Saudi Arabia continued to dominate the regional IPO charts, accounting for 13 of the 14 IPOs in the region over the three-month period. Proceeds from Saudi IPOs accounted for USD 1.9 bn of the total USD 2.5 bn raised across the region. Leading the pack in KSA and the region in terms of amount raised was Flynas ' entrance to the Tadawul that raised USD 1.1 bn — accounting for 44.2% of proceeds for the whole region.

The only other country to witness an offering was the UAE, with the offering of DubaiResidential REIT on the Dubai Financial Market, which raised USD 584 mn. The 26x oversubscribed IPO was the second largest offering by proceeds in the region, accounting for some 23.6% of all proceeds during the quarter for the region.

Issuers adopted a more cautious trend, favoring shareholder exits over raising new capital. This boosted offerings in the region during the second quarter through secondary listings, whose share rose to 64.3% of total IPOs compared to 35.7% in the first quarter of this year. Meanwhile, the number of primary listings decreased from six in 1Q 2025 to four in 2Q. The region did not witness any direct listings in 2Q.

The quarter was marked by poor first day performance, with 10 of the 14 IPOs finishing their first day trading at below their offer price. The report attributes this to investors taking a cautious approach due to “ongoing global uncertainty driven by trade tensions, tariff shifts, tightening financial conditions, and heightened geopolitical volatility across the MENA region.”

Less than half of the companies were trading above their IPO price by the end of the quarter, with six of the 14 companies in the red following their IPOs. The share price of Dkhoun National Trading on the Tadawul’s parallel market Nomu down 27% and the United Carton Industries Company on the main market down 25% on their offering prices as of 30 June.

Leading the charts in post-IPO gains is Asas Makeen, which rose 36% by the end of the quarter.

EY sees IPO appetite keeping a pace in 2025 — and staying centred around KSA. Fourteen companies are planning to list this year, with Saudi Arabia accounting for ten of these. The list also includes planned IPOs in non-GCC nations Egypt, Tunisia, and Morocco, which the reports says points to the growing market depth and diversification in the region.

MARKETS THIS MORNING-

Asian markets are in the green in early trading today, as the markets react to the overnight decision to extend the US-China trade war truce by 90 days. Japan’s Nikkei is up 2.5%, Korea’s is up 0.6%, and the Shanghai Composite is up 0.5%, while Hong Kong’s Hang Seng is flat. Over on Wall Street, futures are muted as investors await US inflation data for July.

ADX

10,302

-0.1% (YTD: +9.4%)

DFM

6,153

+0.1% (YTD: +19.3%)

Nasdaq Dubai UAE20

5,075

-0.3% (YTD: +21.9%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.4% o/n

4.1% 1 yr

TASI

10,792

-1.0% (YTD: -10.3%)

EGX30

35,909

-0.6% (YTD: +20.7%)

S&P 500

6373

-0.3% (YTD: +8.4%)

FTSE 100

9130

+0.4% (YTD: +11.7%)

Euro Stoxx 50

5332

-0.3% (YTD: +8.9%)

Brent crude

USD 66.63

+0.1%

Natural gas (Nymex)

USD 2.98

+0.7%

Gold

USD 3,404.70

-2.5%

BTC

USD 119,052.10

+0.3% (YTD: +27.3%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.6

+0.3% (YTD: +3.4%)

S&P MENA Bond & Sukuk

147.74

-0.1% (YTD: +5.6%)

VIX (Volatility Index)

16.25

+7.3% (YTD: -6.3%)

THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 641.7 mn. The index is up 19.3% YTD.

In the green: Amlak Finance (+10.1%), Al Mal Capital REIT (+4.1%) and Al Mazaya Holding Company (+2.3%).

In the red: National Cement Company (-2.7%), ENBD REIT (-2.4%) and BHM Capital (-2.3%).

Over on the ADX, the index fell 0.1% yesterday on turnover of AED 959.4 mn. Meanwhile, Nasdaq Dubai is down 0.3%.

CORPORATE ACTIONS-

Al Mal Capital seals capital hike: DFM-listed asset manager Al Mal Capital REIT will boost its paid-up capital by 36.45% to AED 701.2 mn, after having secured regulatory approval from the Securities and Commodities Authority, it reported in a filing (pdf) to the bourse. The new units started trading on the DFM as of yesterday. The Dubai-based firm’s recently wrapped follow-on public offering — priced at AED 1.1 per unit — had raised AED 210 mn, AED 10 mn short of its initial target.

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