7 MENA IPOs raise US$1.5 billion in Q3 2022

• Year-to-date has seen a 288% increase in IPO volume and 550% increase in value when compared to the same period in 2021
• Saudi Arabia dominated listing activity with five IPOs during Q3 2022
• UAE registered the largest IPO in Q3 2022 with Salik Company PJSC raising over US$1 billion

Riyadh, Kingdom of Saudi Arabia – 26 October 2022: According to the latest EY MENA IPO Eye Q3 2022 report, the MENA region has witnessed a 288% year-on-year increase in the number of companies listing during the first nine months of the year, raising US$14.7 billion in total – up 550% on the same period last year.

The strong run across the region’s markets included seven IPOs in Q3, raising approximately US$1.5 billion, bringing the total number of MENA IPOs in the year-to-date 2022 to 31.

Globally, in the year-to-date, there have been a total of 992 IPOs, raising US$146 billion, a 44% and 57% decrease year-on-year respectively as companies and investors continue to face mounting macroeconomic challenges, market uncertainties, increasing volatility and falling global equity prices.

The MENA region, however, has generally bucked the global trend with IPO activity and pipeline continuing to remain strong despite the weaker global sentiment.

Brad Watson, EY MENA Strategy and Transactions Leader, says:

“Despite IPO volumes and values declining significantly in the majority of other global markets, the MENA region continues to forge its own path with a steady stream of new listings in Q3 adding to the large number of IPOs already announced across exchanges in the year-to-date. While Saudi Arabia and the United Arab Emirates make up the majority of new listings, we are also seeing increased signs of future activity in some of the smaller markets of the region – particularly Kuwait, Oman and Qatar.”

Saudi Arabia leads listings activity

The Kingdom of Saudi Arabia (KSA) dominated listings activity in Q3 with two IPOs on Tadawul’s Main Market and three IPOs on the Nomu-Parallel Market, raising US$490 million in proceeds. Alamar Foods Company’s public offering was the largest, with US$326 million raised and the IPO order book being oversubscribed approximately 48 times. Naqi Water Company raised US$110 million and was oversubscribed over 30 times. The remaining three IPOs on the Nomu-Parallel Market saw Saudi Networkers Services Ltd, International Company for Human Resources and Naba Alsaha Medical Services Company, raised approximately US$54 million in total.

United Arab Emirates sees region’s largest IPO in Q3

In the United Arab Emirates (UAE), Salik Company PJSC, Dubai’s exclusive toll gate operator, raised over US$1 billion, becoming the largest MENA IPO during Q3 and the fourth largest in the region in the year-to-date 2022. The IPO was oversubscribed more than 49 times across all tranches with total gross demand at US$50.2 billion.

IPO activity also returned to Morocco for the first time since last year, with Disty Technologies SA, a Moroccan IT company, raising approximately US$17 million on the Casablanca Stock Exchange.

Gregory Hughes, EY MENA IPO and Transaction Diligence Leader, says:

“This has been another strong year for IPOs and trading activity throughout the MENA region, with investor confidence remaining high despite challenging financial headwinds across the world. As we look into Q4, we see no signs of that changing, with several prominent companies in the region having completed their IPOs. We are also expecting increased activity in dual listings to tap varied liquidity pools; and continued government divestment processes in the UAE, Oman and other countries, as well as movement from family businesses, which are believed to be planning market entry in different parts of the region.”