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MENA IPO activity raised some USD 2.6 bn last quarter: IPO proceeds in the MENA region climbed 45.3% y-o-y to USD 2.64 bn in 2Q 2024 as IPO activity was buoyed by increased liquidity spurred by higher oil prices and positive market sentiment, according to an EY press release dissecting its MENA IPO Eye report. The proceeds were raised across 14 listings — up from the 13 listings regional bourses saw in the same period last year — in Saudi Arabia, UAE, and Kuwait.
KSA captured some 60% of the pie: Eleven out of the 14 listings that took place in the region during the quarter were in Saudi Arabia. The listing raised a combined USD 1.6 bn — c. 60% of the region’s proceeds from IPO activity. The IPO of Fakeeh Care Group raised the lion’s share with USD 764 mn, followed by Saudi Manpower Solutions Company (SMASCO) at USD 240 mn and Rasan Information Technology Company at USD 224 mn. Five companies — including the top three contributors — listed on the Tadawul main market, while the other six IPOed on Nomu.
The UAE came in second: The UAE saw two IPOs over the last quarter — Alef Education Consultancy and Spinneys raised a combined USD 890 mn from their IPOs after listing on the Abu Dhabi Securities Exchange and the Dubai Financial Market, respectively.
Kuwait saw its first listing following a dry spell: Kuwait’s Beyout Investment Group raised USD 147 mn from taking a 30% stake to the Kuwait Stock Exchange in June, marking the country’s first IPO since 2019.
Where are they now? “Eight out of the 14 MENA IPOs listed in Q2 2024 had shown a positive return as of the 30 June share price in comparison with their IPO price, with [the Saudi] Miahona Company achieving the highest gain of 90.4% within the period,” the release said.
Remember- The Kingdom also accounted for the lion’s share of IPO proceeds in the GCC in 1H 2024, raising USD 2.1 bn or 59% of the bloc’s total.
MARKETS THIS MORNING-
Asian markets are mixed in early trading this morning, with the Nikkei and Kospi up and the Hang Seng and Shanghai Composite in the red. Futures for major US equities benchmarks were mostly unchanged overnight.
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TASI |
11,797 |
+0.5% (YTD: -1.4%) |
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MSCI Tadawul 30 |
1,479 |
+0.2% (YTD: -4.7%) |
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NomuC |
25,365 |
+0.3% (YTD: +3.4%) |
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USD : SAR (SAMA) |
USD 3.75 Sell |
USD 3.75 Buy |
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Interest rates |
6.5% repo |
5.5% reverse repo |
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EGX30 |
29,331 |
-1.3% (YTD: +17.8%) |
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ADX |
9,175 |
-0.4% (YTD: -4.2%) |
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DFM |
4,185 |
-0.4% (YTD: +3.1%) |
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S&P 500 |
5,434 |
+1.7% (YTD: +13.9%) |
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FTSE 100 |
8,235 |
+0.3% (YTD: +6.5%) |
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Euro Stoxx 50 |
4,695 |
+0.5% (YTD: +3.8%) |
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Brent crude |
USD 80.69 |
-2.0% |
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Natural gas (Nymex) |
USD 2.15 |
+0.3% |
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Gold |
USD 2,506 |
-0.1% |
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BTC |
USD 60,985 |
+3.4% (YTD: +44.4%) |
THE CLOSING BELL: TADAWUL-
The TASI rose 0.5% yesterday on turnover of SAR 5.5 bn. The index is down 1.4% YTD.
In the green: Chubb (+10.0%), SGS (+9.9%) and Ayyan (+8.9%).
In the red: Saudi Kayan (-2.7%), SIECO (-2.5%) and Nayifat (-2.5%).
THE CLOSING BELL: NOMU-
The NomuC rose 0.3% yesterday on turnover of SAR 41 mn. The index is up 3.4% YTD.
In the green: Mobi Industry (+11.2%), Al Hasoob (+10.0%) and Al Qemam (+9.6%).
In the red: Tadweer (-9.9%), Pan Gulf (-9.3%) and Al Muneef (-6.7%)
