Egypt leads the region with five IPOs in H1, followed by Saudi Arabia with three IPOs

IPO of Saudi Ground Services Company on the Saudi Stock Exchange was the largest IPO in H1 2015

Nine MENA IPOs in Q2 2015 raising over US$2.1b

DUBAI, 11 AUGUST 2015. H1 2015 saw 11 IPOs in the Middle East and North Africa (MENA) region, raising capital of over US$2.4b, according to EY's MENA IPO Eye - H1 2015. Deal volume decreased by 31% and proceeds raised decreased by 1% in H1 2015, compared with H1 2014. Egypt and Saudi Arabia witnessed the highest number of IPOs with five and three IPOs respectively.

Q2 2015 saw a significant increase in IPO value, with nine IPOs raising over US$2.1b, a 92% jump compared to Q2 2014. The number of IPOs decreased however by two in Q2 2015, compared with Q2 2014.

Phil Gandier, MENA Transaction Advisory Services Leader, EY, says:

"Egypt and Saudi Arabia continue to be strong IPO performers; the IPOs on Egyptian and Saudi Arabian exchanges were the primary drivers of IPO activity in MENA in H1 2015. Egypt continues to benefit from increasing political stability, improved economic conditions and various reforms, which are driving confidence in the Egyptian capital markets, attracting both companies and investors."

Largest H1 2015 IPO in Saudi Arabia

H1 IPOs in Egypt included Integrated Diagnostics Holdings PLC, Edita Food Industries, Orascom Construction Limited and Emar Misr.

Saudi Arabia saw the listing of three companies, including the long-awaited IPO of Saudi Ground Services Company on the Saudi Stock Exchange (Tadawul), which was the largest IPO in H1 2015, raising US$751.9m, and was over twice the size of the next largest IPO during the period. The IPO is part of the continued privatization of Saudi Arabian Airlines business units.

Mayur Pau, MENA IPO Leader, EY, says:

"IPOs on the Tadawul and the Egyptian Exchange continue to attract strong demand, with offerings up to 11 times oversubscribed, highlighting positive investor sentiment in these markets in particular."

Return of outbound London IPOs

Q2 2015 also saw the first MENA outbound IPOs since the listing of Gulf Marine Services on the London Stock Exchange (LSE) in Q1 2014. Integrated Diagnostics Holdings (healthcare diagnostic services) and Edita Foods Industries (packaged food distributor) opted for listings on the LSE, through a main market listing and listing of global depository receipts.

Integrated Diagnostics Holdings is the third MENA health care company to list on the LSE, following the successful IPOs of NMC Health (2012) and Al Noor Hospital (2013). This sector continues to be one of the most attractive sectors in the MENA region for IPOs.

-Ends-

EY | Assurance | Tax | Transactions | Advisory

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

The MENA practice of EY has been operating in the region since 1923. For over 90 years, we have grown to over 5,000 people united across 20 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region.

© 2015 Ernst & Young.
All Rights Reserved.

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

www.ey.com/mena

© Press Release 2015