Page 113 - ALEF EDUCATION PR REPORT - AUGUST 2024

8/14/24, 12:02 PM Mena IPO activity robust in Q2; nets $2.64bn from 14 issues
Exchange (QE) general index.

According to the EY Mena IPO Eye Q2 2024 report, Saudi Arabia continues to lead regional IPO market, followed by
UAE which is a strong contributor and Kuwait which marked it first listing since Q4 2019.

As with Q1 2024, the KSA stood at the forefront of the region’s IPO activity in terms of the number of listings – 11 out
of 14 – in Q2. A total of $1.6 billion was raised, with the highest proceeds from Dr. Soliman Abdul Kader Fakeeh
Hospital Co. at $764m, followed by Saudi Manpower Solutions Company (Smasco) at $240 million and Rasan
Information Technology Company at $224 million, it stated.

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 $85.4 million.

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, said Watson.

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

On the UAE scenario, he said its Alef Education Consultancy, listed on the Abu Dhabi Securities Exchange, raised
$515 million in the academic and education services sector with its IPO.

The listing of Spinneys 1961 Holding, a family business, on the Dubai Financial Market (DFM) raised $375 million.
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 Company raised $147
million 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.

According to the EY Mena IPO Eye Q2 2024, of the companies intending to list, 14 are in KSA, including Riyad
Capital, United International Holding Company and Arabian Mills for Food Products, among others.

One company in the UAE has also obtained approval to list, alongside Go Bus in Egypt, stated the report.

EY Mena IPO Leader Gregory Hughes said: "The Mena IPO market 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 around the world, we
will monitor with interest the subsequent impact on regional markets and IPO activity," noted Hughes.

Globally, IPO activity declined in comparison to Q2 2023; the number of IPOs dropped by 15% from 317 to 271, and
proceeds decreased by 31% falling from $40.4 billion to $27.8 billion.

The EMEIA region, however, made a remarkable comeback, with inflation approaching ‘normal’ levels, interest rates
falling, stock markets rallying to hit all-time highs, and volatility remaining low, stated the report.

This comeback saw the region regain the top global IPO market share by number – 45% of deal volume and 46% of
value - for the first time in 16 years, it added.

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