According to the EY MENA IPO Eye Q4 2024 report, MENA markets saw a total of 54 initial public offerings (IPOs) in 2024, raising US$12.6b in total. When compared to 2023, last year recorded a 12.5% increase in the number of IPOs and a 17.6% rise in proceeds.
The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings PLC that were listed during the last quarter of the year.
Brad Watson, EY MENA Strategy and Transactions Leader, says:
“The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market. The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity. The market is also anticipating the Arena platform from the DFM, which is expected to launch in 2025.”
Boost in listings across MENA during Q4 2024
During Q4 2024, 25 IPOs raised US$7.9b, which represents a 32% increase in number and a 59.4% surge in proceeds when compared to Q4 2023.
Talabat Holding plc, which listed on the Dubai Financial Market (DFM), raised the highest proceeds, contributing 25.8% of the overall proceeds for Q4 2024. It was followed by OQ Exploration & Production, which listed on the Muscat Stock Exchange (MSX) and raised US$2.0b – the largest IPO in Oman to date – and accounted for 25.3% of the total quarterly proceeds.
Meanwhile, the Bahrain Bourse witnessed the AlAbraaj Restaurants Group IPO that raised US$23.9m.
Outside of the GCC region, there were two IPOs in Q4 2024 – Compagnie Marocaine de goutte a goutte et de pompage (CMGP) in Morocco and The United Bank in Egypt.
Saudi Arabia continues to dominate listings
The Kingdom of Saudi Arabia (KSA) dominated the region’s IPO activity with 17 out of the 25 listings in Q4 2024, with total proceeds of US$1.2b. Five IPOs took place on the Tadawul Main Market with total proceeds of US$1.1b. Arabian Mills for Food Products Company and United International Holding Company marked the highest proceeds at US$0.3b each. The remaining 12 IPOs, raising US$119m in total, were listed on the Nomu – Parallel Market.
In 2024, various sectors contributed to IPO funds raised in KSA, with the largest shares coming from commercial and professional services at 20.0%, materials at 12.5%, food and beverages (F&B) at 10.0% and healthcare equipment and services at 10.0%.
UAE reports four new listings during Q4 2024
In the United Arab Emirates (UAE), the Abu Dhabi Securities Exchange (ADX) welcomed two IPOs in Q4 2024 with US$2.0b in combined proceeds. Lulu Retail Holdings PLC raised US$1.7b, and ADNH Catering PLC raised US$235m. The ADX also saw a direct listing of Mair Group. In Dubai, the DFM had one new listing in Q4, Talabat Holding plc in the consumer and technology sector, raising US$2.0b.
For the UAE, ESG goals remain a priority. The country has introduced a law, effective May 2025, that requires companies to report carbon emissions. Additionally, businesses must adopt decarbonization strategies that include renewable energy and carbon offsetting. Applicable to all sectors, including free zones, the law sets penalties for noncompliance, encourages research and development and promotes carbon trading through a dedicated registry. These measures align with the UAE’s 2050 net-zero ambitions and are likely to influence IPO market dynamics as companies prioritize sustainability to attract investors.
Gregory Hughes, EY MENA IPO and Transaction Diligence Leader, says:
“The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46% of the total IPO activity in that year. Nomu listings accounted for 50%, indicating robust activity in the junior Saudi market. Talabat and OQ Exploration & Production raised substantial proceeds, showcasing strong demand from regional investors. The region also continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike.”
The outlook for MENA IPOs in 2025 remains positive, with 38 companies and 22 funds intending to list on the region’s exchanges across a variety of sectors. Among the GCC countries, KSA remains the lead in listings with 27 companies in the pipeline, followed by the UAE with three, and Qatar with one. Outside of the GCC, Egypt has announced five IPOs, and Algeria has two businesses intending to list. Notable companies, such as Etihad Airways PJSC and Amanat Holdings from the UAE, as well as Panda Retail Company and Riyad Capital from KSA, are among those considering IPOs in 2025.
