Saudi Arabia has maintained its leadership in the Middle East and North Africa (MENA) initial public offering (IPO) market. The region raised close to $1 billion in proceeds in the past three months, signaling a strong pipeline for future listings. This remarkable achievement occurred within just three months, reflecting a robust pipeline of upcoming listings.
During the third quarter, five IPOs launched across Saudi Arabia, the UAE, and Egypt. Collectively, these IPOs raised an impressive $0.93 billion, representing significant year-on-year growth. “In Q3 2024, companies raised proceeds of $0.93 billion, which was 76.8% higher than the previous year,” stated Brad Watson, EY MENA Strategy and Transactional Leader.
Saudi Arabia’s Strategic Initiatives
The Kingdom actively rolls out initiatives to attract investors while reducing reliance on oil revenues. Saudi Arabia led the share sales, accounting for three out of five IPOs and raising $27 million in total proceeds. This strategy demonstrates the kingdom’s commitment to diversifying its economy and enhancing investment opportunities.
The Gulf state’s parallel equity market, Nomu, has emerged as the frontrunner in fundraising activity. This market registered the highest number of IPOs in 2024, showcasing its growing significance. “Saudi Arabia continues to lead IPO activity in the region,” noted Gregory Hughes, EY MENA IPO Leader.
Hughes highlighted that the Tadawul Nomu-Parallel Market has become increasingly attractive for businesses. It offers improved fundraising opportunities for the kingdom’s expanding small and medium-sized enterprise (SME) sector. Consequently, it now stands as the stock exchange with the most IPOs in this region for 2024.
Top IPOs of the Third Quarter
Among the major IPOs in Saudi Arabia during the third quarter, Tharwah Human Resources Company made a remarkable debut. This company raised $12 million, nearly half of the total proceeds. It became the first consulting firm publicly traded in the kingdom’s parallel market.
ASG Plastic Factory Company secured $9 million in proceeds, placing second in the rankings. Al Ashghal Almoysra Company followed closely with $6 million raised, both companies floated their shares on Nomu. Additionally, two Saudi firms, Naas Petrol Factory Company and the Arabian United Float Glass Company, joined the parallel market.
In the wider MENA region, the UAE concluded the recent quarter with the largest IPO. NMDC Energy achieved $877 million in proceeds before its debut on the Abu Dhabi Securities Exchange (ADX). In Egypt, Act Financial’s recent IPO marked the first listing since 2022, signaling renewed market activity.
Anticipated Future Listings
Looking ahead, the IPO landscape remains promising. Eleven businesses and five funds have already confirmed their listing plans before the end of the year. This anticipated growth further underscores the dynamism and potential within the MENA IPO market.
