Positive outlook for MENA IPOs going into 2024, reveals EY report

Positive outlook for MENA IPOs going into 2024, reveals EY report

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A new report from consultancy firm EY reflects a positive outlook for the Middle East and Africa (MENA) IPO market in Q4 and 2024.

According to the EY MENA IPO Eye Q3 2023 report, MENA markets saw six initial public offerings (IPOs) during Q3 that raised $523m.

This represented a 14 per cent decrease in the number of IPOs and a 66 per cent drop in proceeds when compared to Q3 2022.

All six listings registered a gain.

In Q3 2023, there were a total of 29 IPOs year-to-date (YTD) in MENA with total proceeds of $5.8bn, marking a 6 per cent reduction in volume and a 61 per cent drop in funds raised year on year (y-o-y).

All YTD listing activity took place in the GCC region.

The report stated that despite lower levels of proceeds from MENA listings, the IPO pipeline for Q4 2023 and into 2024 remains positive, mostly driven by Saudi Arabia, where 27 companies have announced their intention to list on the Tadawul.

MENA IPOs: Q2 and H1 IPO activity

In Q2 2023, IPO activity in the MENA region net a total of $1.8bn in proceeds from 13 IPOs – a 44 per cent increase in the number of