Despite ongoing economic and political uncertainties, global initial public offerings (IPOs) had a positive start to 2024, as reported by EY MENA IPO Eye Q1 2024. The report indicates that 287 IPOs raised $23.7 billion globally, representing a 7% year-over-year increase.

The Middle East and North Africa (MENA) region mirrored the global trend, experiencing a surge in IPO announcements. An additional 25 private companies and 10 funds across various sectors are planning to list on regional exchanges throughout 2024.

Saudi Arabia emerged as the leader in IPO activity, with nine successful listings, followed by the UAE with its first listing of 2024, raising a combined total of $1.2 billion in Q1. Brad Watson, EY MENA Strategy and Transactions Leader, commented on the region’s performance, emphasizing Saudi Arabia’s dominance.

He also emphasized the region’s healthy pipeline, with several companies in the GCC and North Africa expressing their intention to go public. Saudi Arabia further solidified its leadership with successful IPOs from Modern Mills Company ($724 million), MBC Group ($222 million), and Middle East Pharmaceutical Industries Company ($131 million). 

Modern Mills’ offering, representing nearly 27.3% of the region’s total proceeds, highlighted investor confidence in the Saudi market.

Beyond the Gulf Cooperation Council (GCC), IPO announcements from Raya Information Technology in Egypt and Crédit Populaire d’Algérie in Algeria highlight the growing appetite for capital market activity across the MENA region.

The UAE experienced a successful IPO from Parkin Company, raising $0.4 billion on the DFM and contributing over 37% of the region’s total Q1 IPO value. The oversubscribed offering, attracting 165 times the number of shares available, reflects investor enthusiasm for UAE market opportunities.

Additionally, the UAE’s mandatory environmental, social, and governance (ESG) reporting guidelines for listed companies on the Abu Dhabi Securities Exchange (ADX) signify a commitment to transparency and sustainability.