In the first half of 2022, the MENA area experienced a 500 percent year-on-year increase in the number of listed firms, with 24 IPOs generating $13.5 billion in revenue and a 2,952 percent year-on-year increase in value. According to a recent report, at the same time in 2021.
During the second quarter of 2022, MENA IPO markets saw nine IPOs raise approximately $9 billion in proceeds. Although the number of IPOs decreased by 40 percent when compared with Q1 2022, the proceeds raised increased by 133 percent, according to the latest EY MENA IPO Eye report.
Globally, 630 IPOs raised $95.4 billion in proceeds during H1 2022, which is a significant drop of 46 percent in the number of IPOs and 58 percent in the proceeds raised, as compared to H1 2021. Heightened volatility caused by geopolitical tensions and macroeconomic factors, declining valuation and poor post-IPO share price performance led to the postponement of many global IPOs during the first half of 2022.
“MENA IPO activity continues to defy global trends and remains a bright spot in a challenging market. The number and value of deals in the second quarter of this year confirm that investors still have an appetite for growth, yield and diversification. Several MENA listings from a range of sectors were oversubscribed, which is encouraging for companies looking to list during the second half of this year,” said Brad Watson, EY MENA Strategy and Transactions Leader.
