10 MENA companies raise $3.4bln in Q1 2023; IPO pipeline looks strong

10 MENA companies raise $3.4bln in Q1 2023; IPO pipeline looks strong

IPOs in the MENA region remain buoyant with a promising pipeline for the rest of the year, as Q1 2023 saw 10 listings with combined proceeds of $3.4 billion, consultancy firm EY said in a new report.

However, the number of listings and value is down 33% and 14% in Q1 2023 year-on-year.

The promising pipeline in the MENA is driven by various enabling initiatives, such as the Abu Dhabi IPO Fund. In addition, six companies in Saudi Arabia have already announced plans to list on the Saudi Exchange (Tadawul).

The volatility experienced in the regional equity market during 2022 continued into the first quarter due to rising interest rates, inflation concerns, unexpected global banking turbulence and geopolitical uncertainties, impacting investor sentiment.

At the end of the quarter, six out of the 10 MENA IPOs had a positive return compared to their IPO price, with Presight Al Holding PLC achieving the highest gain of 146.3%.

“Q1 2023 proved MENA IPOs continue to go against global trends in these uncertain economic times, building on the momentum from last year. 2023 shows a healthy pipeline across the region, with several initiatives to support private and government entities on their path to IPO,” said EY MENA Strategy and