Saudi Arabia dominated IPO activity in the MENA region during the first quarter of 2024, with nine listings, a new report revealed.
According to the latest EY MENA IPO Eye report, there were a total of 10 IPOs in the region in Q1, raising cumulative proceeds of $1.2 billion. Saudi Arabia accounted for nine of those 10 listings.
“Saudi Arabia continued to dominate the listing activity with nine IPOs across diverse sectors, while [Dubai Financial Market] DFM welcomed its first listing in 2024,” said Brad Watson, EY MENA Strategy and Transactions Leader.
The largest IPO in Saudi Arabia was by Modern Mills Company, which raised $724 million – accounting for 27.3 percent of the overall Q1 2024 proceeds in MENA. This was followed by MBC Group’s $222 million listing and Middle East Pharmaceutical Industries Company’s $131 million IPO.
In addition, six other companies listed on the Nomu – Parallel Market in Saudi Arabia, raising a combined $57 million. The IPOs came from sectors such as healthcare, food and beverage, and media and entertainment.
Looking ahead, several Saudi companies have announced their intentions to list, including Saudi Manpower Solutions Company, Miahona and Panda Retail Company. This signals continued strength in Saudi Arabia’s pipeline of companies seeking public listings.
“The region has retained a robust pipeline, with several companies in GCC and North Africa having announced their intentions to list,” added Watson.
UAE Parkin IPO
Although listing activity was dominated by Saudi Arabia this quarter, the UAE saw its biggest listing with Parkin Company PJSC raising $400 million upon its debut on DFM.
“The start of the year has been strong with no sign of a slowdown in IPO activity,” said Gregory Hughes, EY MENA IPO Leader.
The IPO saw exceptionally high demand from investors, receiving orders over 165 times the shares on offer. This translated to sizable first-day gains of 35 percent upon its debut on the DFM, a larger increase than any other listing that quarter.
Parkin is the third entity affiliated with Dubai’s Roads and Transport Authority to enter the public markets, following the successful listings of Salik, the entity managing toll gates, and Dubai Taxi Corporation.
Upcoming privatisations in the UAE also suggest its market will remain active in the future, EY said.
“The successful listing of Parkin Company PJSC on the DFM demonstrated a continued commitment toward the Dubai government’s privatisation program that involves listing state-owned companies as part of the nation’s economic diversification drive,” Hughes added.
The UAE also announced major upcoming listings, some of which include Spinneys, LuLu Group, and Etihad Airways.
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