The latest report from EY MENA IPO Eye shows that Saudi Arabia took the lead in IPO activities in the MENA region in the first quarter of 2024, with nine listings.
The report noted a total of 10 IPOs in the region during Q1, raising a combined $1.2B Of these, nine were in Saudi Arabia.
Brad Watson, EY MENA Strategy and Transactions Leader, pointed out, “Saudi Arabia remained dominant in the IPO market with nine listings across different sectors, while DFM saw its first listing of 2024.”
The most significant IPO in Saudi Arabia was by Modern Mills Company, raising $724M, making up 27.3 percent of MENA’s Q1 2024 total proceeds. Following this, MBC Group raised $222M, and Middle East Pharmaceutical Industries Company secured $131M.
Additionally, six other companies debuted on the Nomu – Parallel Market in Saudi Arabia, raising a total of $57M, covering sectors like healthcare, food and beverage, and media and entertainment.
Looking ahead, several Saudi firms have announced plans to go public, indicating continued strength in Saudi Arabia’s IPO pipeline.
“The region has a strong pipeline, with many GCC and North African companies planning to go public,” added Watson.
UAE’s Parkin IPO
Despite Saudi Arabia’s dominance, the UAE saw its largest listing with Parkin Company PJSC, raising $400M on its debut on DFM.
Gregory Hughes, EY MENA IPO Leader, said, “The beginning of the year shows promise with no sign of IPO activity slowing down.”
Parkin’s IPO attracted significant investor interest, with orders exceeding 165 times the shares offered. This led to a notable 35 percent increase on the first day on the DFM, outperforming any other listing that quarter.
Parkin is the third entity related to Dubai’s Roads and Transport Authority to enter the public markets, following the successful listings of Salik and Dubai Taxi Corporation.
EY also highlighted significant upcoming privatizations in the UAE, indicating continued market activity.
“The successful listing of Parkin Company PJSC on the DFM demonstrates Dubai government’s commitment to its privatization strategy, involving the listing of state-owned firms to diversify the economy,” noted Hughes.
The UAE also announced major upcoming listings, including Spinneys, LuLu Group, and Etihad Airways.
