Page 104 - ALEF EDUCATION PR REPORT - AUGUST 2024

(five of which were on the Tadawul main market). The most significant fundraise was by Dr.
Soliman Abdul Kader Fakeeh Hospital Co. (US$764m).”

“Increased liquidity driven by higher oil prices, economic recovery, and positive market
sentiment has kept the IPO activity in the region buoyant with a strong pipeline for H2 2024.”

Eight out of the 14 MENA IPOs listed in Q2 2024 had shown a positive return as of the 30 June
2024 share price in comparison with their IPO price, with Miahona Company achieving the
highest gain of 90.4% within the period.

Stock exchanges across the MENA region exhibited varied performances. MSCI Emerging
Markets Index ended Q2 2024 with a gain of 4.2%, making it the top-performing market in the
GCC, followed by the gain of 1% from Qatar Exchange (QE) general index.

Saudi Arabia continues to lead regional IPO market

As with Q1 2024, the Kingdom of Saudi Arabia (KSA) stood at the forefront of the region’s IPO
activity in terms of the number of listings – 11 out of 14 – in Q2 2024. A total of US$1.6b was
raised, with the highest proceeds from Dr. Soliman Abdul Kader Fakeeh Hospital Co. at
US$764m, followed by Saudi Manpower Solutions Company (SMASCO) at US$240m and
Rasan Information Technology Company at US$224m. Five out of the 11 IPOs were listed on
the Tadawul main market, including the top three contributors, with the remaining six taking
place on the Nomu market with total proceeds of US$85.4m. Funds raised originate from a
number of different sectors including healthcare, equipment services, commercial and
professional services, materials, mineral resources, and finance and insurance services.

The Kingdom also leads in the IPO pipeline activity, with 14 Saudi companies announcing their
intention to list by the end of the year.

United Arab Emirates strong contributor, Kuwait marks first listing since Q4 2019
The United Arab Emirates (UAE)’s Alef Education Consultancy LLC, listed on the Abu Dhabi
Securities Exchange, raised US$515m in the academic and education services sector with its
IPO. The listing of Spinneys 1961 Holding Plc, a family business, on the Dubai Financial Market
(DFM) raised US$375m. Together, these two IPO listings in the UAE accounted for 33.8% of the
quarter’s total proceeds.

Marking the first listing in Kuwait since Q4 2019, Beyout Investment Group (BIG) Holding Co.
raised US$147m on the Kuwait Stock Exchange (KSE).
The remainder of 2024 is set to see robust activity in the IPO market, with an additional 16
private companies and seven funds across various sectors intending to list on the MENA
exchanges. Of the companies intending to list, 14 are in KSA, including Riyad Capital LLC,
United International Holding Co. and Arabian Mills for Food Products, among others. One
company in the UAE has also obtained approval to list, alongside Go Bus in Egypt.

Gregory Hughes, EY MENA IPO Leader, says:
“The MENA IPO market is continued to be led by the KSA and the UAE markets. However, the
Kuwait Boursa welcomed their first listing since 2019. There is a continued focus on economic
diversification away from oil and gas, with the MENA region continuing to see listings from a
variety of sectors including health care, education, consumer goods and professional services.
As we enter a phase of declining interest rates and continue to witness major country elections

https://www.ey.com/en_qa/newsroom/2024/08/mena-region-saw-14-ipos-valued-at-us-2-64b-in-
q2-2024