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24 MENA IPOs raised a record $13.5 billion this year

A strong show in the markets means Saudi Arabia and the UAE lead the IPO activity in the MENA region

[Source photo: Anvita Gupta/Fast Company Middle East]

According to an EY report, 24 Initial Public Offerings (IPOs) in the Middle East and North Africa region have raised $13.5 billion in the first six months of this year. This has translated into a staggering year-on-year increase of 2,952%.

In comparison, the global markets saw 630 IPOs raising $95.4 billion during the same time. There is a significant drop of 58% in the amount raised and a 46% dip in the number of IPOs.

The report also mentioned the reason behind the below-par performance of global IPOs. It read, “Heightened volatility caused by geopolitical tensions and macroeconomic factors, declining valuation, and poor post-IPO share price performance led to the postponement of many global IPOs during the first half of 2022.”

The report says that, during the second quarter of 2022, the Middle East and North Africa (Mena) IPO markets saw nine IPOs raise approximately $9 billion in proceeds. Although the number of IPOs decreased by 40% compared with the first quarter of 2022, the proceeds saw an increase of 133%.

Impressed by the performance of the IPOs in the region, Brad Watson, EY MENA Strategy and Transactions Leader, said, “Mena IPO activity continues to defy global trends and remains a bright spot in a challenging market.”

“The number and value of deals in the second quarter of this year confirms that investors still have an appetite for growth, yield, and diversification. Several MENA listings from a range of sectors were oversubscribed, which is encouraging for companies looking to list during the second half of this year,” Watson added.

To recall, Dubai Electricity and Water Authority (Dewa)’s IPO was the largest in Europe, the Middle East, and Africa, with 9 billion shares. It was also the biggest IPO ever in the UAE and saw a 37-time oversubscription.

Similarly, Borouge came up with the second-largest IPO during H1 2022 and raised $2 billion, while ADC Acquisition Corp PJSC successfully raised $99.9 million with its listing on the Abu Dhabi Securities Exchange (ADX).

On the other hand, Saudi Arabia had five IPOs during this period, including a $160 million Saudi Home Loans Company IPO and Retal Urban Development Company that raised $384 million.

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