Page 120 - ALEF EDUCATION PR REPORT - AUGUST 2024

8/14/24, 12:03 PM MENA IPO activity booms, raising $2.64bn in Q2 2024 - Dailynewsegypt
The United Arab Emirates (UAE) was also a signi cant contributor to the region’s IPO market, with Alef
Education Consultancy LLC raising $515m on the Abu Dhabi Securities Exchange (ADX) and Spinneys

1961 Holding Plc raising $375m on the Dubai Financial Market (DFM). These two IPOs accounted for
33.8% of the quarter’s total proceeds.

“While the MENA equity markets continue to face challenges, Q2 2024 was a stronger quarter with a
total of 14 IPOs raising $2.6bn,” said Brad Watson, EY MENA Strategy and Transactions Leader. “Eleven
of the companies listed were in the KSA region ( ve of which were on the Tadawul main market). The

most signi cant fundraising was by Dr. Soliman Abdul Kader Fakeeh Hospital Co. ($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,” Watson added.

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.

Kuwait also saw its rst listing since Q4 2019, with Beyout Investment Group (BIG) Holding Co. raising

$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 be listed, 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.

“The MENA IPO market continued to be led by the KSA and the UAE markets,” said Gregory Hughes, EY

MENA IPO Leader. “However, the Kuwait Boursa welcomed its rst listing since 2019. There is a
continued focus on economic diversi cation 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.”

Globally, IPO activity declined compared to Q2 2023, with the number of IPOs dropping by 15% from 317

to 271, and proceeds decreasing by 31% from $40.4bn to $27.8bn. However, the EMEIA region
experienced a notable comeback, with in ation approaching “normal” levels, interest rates falling, stock
markets rallying to hit all-time highs, and volatility remaining low. This resurgence saw the region regain

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