The Middle East and North Africa (MENA) IPO market is demonstrating resilience despite global economic uncertainties, with five initial public offerings (IPOs) raising a combined $0.93 billion in the third quarter of 2024, according to the EY MENA IPO Eye Q3 2024 report. This represents a 76.8% year-on-year increase in value, driven predominantly by the UAE’s NMDC Energy’s successful listing, which raised $877 million.
The UAE was at the forefront, hosting the largest IPO in Q3 2024 on the Abu Dhabi Securities Exchange (ADX). NMDC Energy, a marine construction and EPC solutions company, raised nearly 95% of the total proceeds for the quarter, reflecting the UAE’s robust IPO landscape. The country’s continued focus on environmental, social, and governance (ESG) goals also remains a priority, with new legislation requiring emissions reporting for free zones and other sectors starting May 2025.
Meanwhile, Saudi Arabia led in terms of IPO volume, accounting for three of the five regional IPOs for the quarter. These listings collectively raised $27 million, with Tharwah Human Resources Company contributing $12 million. The kingdom’s SMEs continue to gravitate towards the Nomu – Parallel Market, which provides a platform for capital access. Additionally, the Nomu market saw two direct listings from Naas Petrol Factory Company and Arabian United Float Glass (UFG) Company, further underscoring its appeal.
A key development in Q3 was Egypt’s first non-GCC IPO of 2024. Act Financial listed on the Egyptian Exchange (EGX), becoming the first EGX IPO in two years and achieving a 16.3% post-IPO gain, signaling renewed interest in Egypt’s market.
Looking forward, the MENA region anticipates a busy fourth quarter, with plans for 11 private companies and five funds to go public.
Noteworthy companies, including LuLu Group International (ADX), Talabat Middle East (DFM), and Oman’s OQ Exploration & Production (MSX), are gearing up for IPOs. In Saudi Arabia, several firms, such as Tamkeen Human Resources Company and Nice One Beauty Digital Marketing, have secured Capital Market Authority (CMA) approvals, contributing to the country’s expanding IPO pipeline.
Despite regional challenges, MENA stock exchanges have shown resilience, led by Egypt’s EGX30 index, which has seen a 26.8% year-to-date increase. The MSCI Emerging Markets Index also emerged as the top-performing GCC index, up by 14.3% by the close of Q3. Four of the five IPOs listed in Q3 posted gains over their initial prices, reflecting sustained investor confidence.
Brad Watson, EY MENA’s strategy and transactions leader, expressed optimism about the market’s trajectory: “With IPO proceeds reaching $0.93bn, largely due to NMDC Energy PJSC’s listing on ADX, we are confident that MENA’s IPO market will remain active, supported by a solid pipeline across diverse sectors.”
EY’s MENA IPO Leader Gregory Hughes noted, “The third quarter may typically see reduced activity, but MENA saw five IPOs, including the first listing on the EGX since 2022. The Tadawul Nomu – Parallel Market has solidified its role as an attractive avenue for SMEs in Saudi Arabia, making it the region’s most active exchange for IPOs in 2024.”
The positive momentum in the MENA IPO market, supported by strong government backing for economic diversification and investor interest, is expected to carry through to the end of 2024.
