Seven initial public offerings (IPOs) in the Mena region raised approximately $1.5 billion in the third quarter (Q3) of the year, bringing the total number of Mena IPOs year to date to 31, professional services firm EY said in a new report.
The region saw a 288% year-over-year increase in the number of publicly traded companies in the first nine months of the year and brought in a total of $14.7 billion — 550% more than the same period last year, as reported Eye Q3 2022 report emerges from the recent EY Mena IPO.
Globally, there have been a total of 992 IPOs year to date, raising $146 billion, down 44% and 57% respectively from a year ago, as companies and investors continue to grapple with mounting macroeconomic challenges, market uncertainties, rising volatility and falling global stock prices.
However, the Mena region has generally bucked the global trend, with IPO activity and pipeline remaining strong despite weaker global sentiment.
Brad Watson, EY Mena Strategy and Transactions Leader, said: “Although IPO volumes and values have declined significantly in most other global markets, the Mena region continues to carve out its own path with a steady stream of new listings in the third quarter, which added to the large number of IPOs already announced across all stock exchanges in the current year. While Saudi Arabia and the United Arab Emirates account for the majority of new listings, we are also seeing increased signs of future activity in some of the region’s smaller markets – notably Kuwait, Oman and Qatar.”
The United Arab Emirates sees the region’s largest IPO in Q3
In the United Arab Emirates, Salik Company PJSC, Dubai’s exclusive toll booth operator, raised over $1 billion, becoming Mena’s largest IPO in the third quarter and fourth-largest in the region in year-to-date 2022. The IPO was more than 49 – times oversubscribed across all tranches for aggregate gross demand of $50.2 billion.
IPO activity also returned to Morocco for the first time since last year, with Disty Technologies SA, a Moroccan IT company, raising about $17 million on the Casablanca Stock Exchange.
Saudi Arabia leads listing activity
The Kingdom of Saudi Arabia (KSA) dominated the listing activity in the third quarter with two IPOs on the main Tadawul market and three IPOs on the Nomu parallel market, raising proceeds of US$490 million. The IPO of Alamar Foods Company was the largest, raising $326 million and an IPO order book that was about 48 times oversubscribed.
Naqi Water Company raised $110 million and was over 30 times oversubscribed. In the remaining three IPOs on the Nomu Parallel market, Saudi Networkers Services Ltd, International Company for Human Resources and Naba Alsaha Medical Services Company raised a total of approximately $54 million.
Gregory Hughes, IPO and Transaction Diligence Leader at EY Mena, said: “This has been another strong year for IPOs and trading activity across the Mena region, with investor confidence remaining high despite challenging financial headwinds around the world. Looking at the fourth quarter, we don’t see any sign of that changing as several prominent companies in the region have completed their initial public offerings.
“We also anticipate increased activity on dual listings to tap into various liquidity pools; and continued government divestment processes in the United Arab Emirates, Oman and other countries, as well as the movement of family businesses believed to be planning to enter various parts of the region.”
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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