ABU DHABI, UAE – A recent report revealed that 29 initial public offerings (IPOs) were recorded in the Middle East and North Africa (MENA) region during the first nine months of this year, with total proceeds of US$5.8 billion.
The report, issued on Tuesday by Ernst Young (EY) on IPO activity in the region, stated that all IPOs executed in the region since the beginning of this year took place in the Gulf Cooperation Council (GCC) region.
The report also indicated that the MENA region witnessed six IPOs during the third quarter of this year with proceeds of US$523 million.
The report described plans to list shares for IPO in the fourth quarter of 2023 and early 2024 as still promising, with strong support from the Kingdom of Saudi Arabia, which has announced that 27 companies in it are planning to list their shares on the main market Tadawul.
Brad Watson, the leader of EY MENA’s Strategy and Transactions team, expressed confidence in the region’s IPO market, noting that 21 out of 29 IPOs since the beginning of the year have seen their share price increase since listing. He also highlighted the strong support from the UAE and Saudi Arabia, which are both committed to enhancing the activity of their capital markets and attracting foreign investment.
EY MENA IPO and Transaction Diligence Leader Greg Hughes is optimistic about the region’s IPO pipeline for the rest of 2023 and 2024. He cited the strong start to the fourth quarter, with three successful IPOs in Saudi Arabia, and EY’s expectation to execute more IPOs in the UAE before the end of the year.