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The UAE showed strong IPO activity in 2Q, with two listings accounting for 33.8% of total IPO proceeds recorded in the Mena region during the quarter, according to EY’s Mena IPO Eye report. Saudi Arabia led the market in terms of number of listings, with 11 IPOs completed during the quarter.
The UAE listings in question: Alef Education’s IPO was the second biggest share float in the Mena region in 2Q 2024, raising USD 515 mn — accounting for 19.5% of the total IPO proceeds in the region. Meanwhile Spinneys’ IPO on the DFM raised USD 375 mn (c. AED 1.38 bn) after receiving more than AED 71 bn in orders.
The regional picture: IPO proceeds increased 45.3% y-o-y in 2Q, with Saudi Arabia and the UAE in the lead. A total of 14 companies debuted on Mena exchanges during the quarter, up from 13 IPOs in 2Q 2023. Kuwait saw its first listing since 4Q 2019 with the USD 147 mn listing of Beyout Investment Group Holding.
Behind the activity: “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 2H 2024,” EY Mena strategy and transactions leader Brad Watson said.
Global IPO activity was not as robust, with IPO volume falling 15% y-o-y to 271 IPOs worth USD 27.8 bn.
Looking ahead, 16 private companies and seven funds are expected to IPO over the remainder of 2024 on Mena exchanges.
REMEMBER- We have a healthy pipeline for the rest of the year: Etihad Airways and supermarket chain LuLu group have each tapped banks to advise on their planned IPOs on the ADX, while Alpha Dhabi is mulling a USD 200 mn IPO as soon as this year. Alpha Dhabi Holding’s CEO also pointed to plans to list some of the firm’s subsidiaries this year.
Over on the DFM, both construction firm Alec and hospitality group Five Holdings tapped advisors, and shisha producer Advanced Inhalation Rituals was said to be eyeing an IPO in 1H 2024. Amanat Holdings is looking to list either its education or healthcare unit, with reports that its healthcare unit could raise some USD 200 mn as soon as this year.
