Saudi Arabia has emerged as the frontrunner in Initial Public Offering (IPO) activities within the Middle East and North Africa (MENA) region for the first quarter of 2024, with a total of nine new market entrants, as detailed in a recent analysis.
The region saw a collective 10 IPOs, accumulating capital of $1.2 billion. The lion’s share of these listings originated from Saudi Arabia, contributing to the majority of the regional IPO volume.
Brad Watson, a leader in Strategy and Transactions for the MENA region, observed, “Saudi Arabia maintained its lead in listings with nine IPOs across various industries, while Dubai Financial Market (DFM) heralded its inaugural listing for the year 2024.”
The most significant IPO in the kingdom was conducted by Modern Mills Company, amassing $724 million, which represented 27.3 percent of the total MENA IPO proceeds for the quarter. MBC Group and Middle East Pharmaceutical Industries Company followed with $222 million and $131 million, respectively.
Additionally, six enterprises ventured onto the Nomu – Parallel Market within Saudi Arabia, collectively raising $57 million. These IPOs spanned the healthcare, food and beverage, and media and entertainment sectors.
Future listings appear promising, with firms like Saudi Manpower Solutions Company, Miahona, and Panda Retail Company signaling their intent to go public, indicating a robust pipeline for Saudi IPOs.
“The region retains a strong pipeline, with multiple companies in the GCC and North Africa announcing plans to list,” Watson further added.
Despite the dominance of Saudi Arabia in IPO activities, the UAE marked its largest listing with Parkin Company PJSC, which secured $400 million on its DFM debut. Gregory Hughes, EY MENA IPO Leader, commented, “The year commenced with robust IPO activity, showing no signs of abating.”
The Parkin IPO was met with overwhelming investor interest, with bids exceeding the shares available by 165 times, which led to an impressive 35 percent surge in share value on its first trading day on DFM, surpassing any other listing in the same period.
Parkin stands as the third affiliate of Dubai’s Roads and Transport Authority to transition to public trading, following in the footsteps of entities like Salik and Dubai Taxi Corporation.
Further privatizations in the UAE are anticipated, suggesting an active market landscape going forward. “Parkin Company PJSC’s successful DFM listing underscores Dubai’s ongoing privatization efforts and its commitment to diversifying its economy,” Hughes elucidated.
Moreover, the UAE has announced several significant listings on the horizon, including Spinneys, LuLu Group, and Etihad Airways, indicating sustained momentum in the region’s market activity.