IPOs in MENA raise $3.4bln in 2023 first quarter

IPOs in MENA raise $3.4bln in 2023 first quarter

Muscat: IPO activity in the Mena region retained strong momentum despite the weaker global sentiment and the quarter saw 10 IPOs with the combined proceeds of $3.4 billion.

This represents a 33 per cent drop in the number of listings and a 14 per cent decrease in value compared with the first quarter of 2022, according to the EY Mena IPO Eye Q1 2023 report.

Globally, the first quarter of 2023 saw a total of 299 IPOs, raising $21.50 billion, a 61 per cent decrease in volume year-on-year (YoY). This follows the trend for 2022, when IPO-bound companies and investors faced ongoing macroeconomic and geopolitical uncertainties, exacerbated by stress in the global banking system. IPO windows are short, and funding conditions are getting tougher, with investors prioritising value over growth.

The Middle East and North Africa (Mena) region, however, remains buoyant, with a promising pipeline for the rest of the year, driven by various enabling initiatives, such as the Abu Dhabi IPO Fund (ADIPOF). Six companies in the Kingdom of Saudi Arabia (KSA) have announced their listing plans on the Saudi Exchange (Tadawul) Main Market. These include Ghida Al-Sultan Company, Foods Gate, Meyar Construction Co., Saudi Lime Industries Company, First Mills Company and