Saudi Arabia Leads IPO Activity in MENA Region
In the first quarter of 2024, Saudi Arabia emerged as a dominant force in initial public offering activity for the region, according to multinational professional services EY.
The Kingdom, along with the UAE, contributed to a total of 10 listings, generating combined proceeds of $1.2 billion. Saudi Arabia maintained its stronghold on the listing front with a diverse array of offerings across various sectors.
Leading the pack was Modern Mills Co. with a substantial IPO of $724 million, followed by MBC Group with $222 million and Middle East Pharmaceutical Industries Co. with $131 million. Most of these companies were listed on the Tadawul Main Market, while the remaining six took place on the parallel market Nomu, raising a collective total of $57 million.
Brad Watson, EY MENA Strategy and Transactions Leader, highlighted the robust pipeline in the region, with several companies in the GCC and North Africa announcing their intentions to list.
The largest IPO in the region during the first quarter of 2024 came from the UAE’s Parkin Co. PJSC, totaling $400 million and oversubscribed 165 times. Significant upcoming listings in the UAE, including Spinneys, LuLu Group, and Etihad Airways, underscore the country’s vibrant IPO market.
The region is also witnessing a growing emphasis on environmental, social, and governance alongside stock market growth. The UAE’s introduction of mandatory ESG reporting guidelines for companies listed on the Abu Dhabi Securities Exchange reflects a commitment to transparency and sustainability. This aligns with broader initiatives such as the Saudi Green Initiative, highlighting the region’s dedication to a greener future.
Gregory Hughes, EY MENA IPO Leader, emphasized the continued strength of stock market debuts activity in the region, stating that the successful listing of Parkin Co. PJSC on the DFM demonstrated a commitment toward the Dubai government’s privatization program and economic diversification drive.