Saudi Arabia and UAE Lead MENA Region in Q1 2024 IPO Activity with $1.2 Billion in Proceeds
In the first quarter of 2024, Saudi Arabia led the way in Initial Public Offerings (IPOs) in the Middle East and North Africa (MENA) region, accounting for nine out of the ten listings, according to EY.
The Kingdom, along with the UAE, generated a combined total of $1.2 billion in proceeds.
Notable IPOs included Modern Mills Co. with $724 million, MBC Group with $222 million, and Middle East Pharmaceutical Industries Co. with $131 million.
Most of these companies were listed on the Tadawul Main Market, while the remaining six were listed on the parallel market Nomu, raising a total of $57 million.
The Gulf Cooperation Council (GCC) and North African regions have seen a strong pipeline of companies planning to list on the stock market, with the UAE leading the way.
The largest IPO in the region during Q1 2024 was from the UAE's Parkin Co. PJSC, worth $400 million and oversubscribed 165 times.
The RTA's third asset to be floated, following Salik and Dubai Taxi Co. The UAE also has notable upcoming listings from Spinneys, LuLu Group, and Etihad Airways.
The region is focusing on Environmental, Social, and Governance (ESG) initiatives alongside stock market growth.
The UAE has introduced mandatory ESG reporting guidelines for companies listed on the Abu Dhabi Securities Exchange, demonstrating a commitment to transparency and sustainability.
The text discusses the successful initial public offering (IPO) of Parkin Co. PJSC on the Dubai Financial Market (DFM).
This IPO aligns with the Saudi Green Initiative, which aims to plant 10 billion trees by 2030 and transition to renewable energy sources, showcasing the region's commitment to a greener future.
Gregory Hughes, EY MENA IPO Leader, emphasized the continued strength of IPO activity in the region and highlighted the Dubai government's privatization program, which involves listing state-owned companies as part of the nation's economic diversification drive.