MENA equity and equity‑related issuance slumped sharply in the first quarter of the year, with total proceeds falling to $472.9 million, marking a 91% YoY decline, according to the LSEG MENA Investment Banking Review for Q1 2026.

The number of deals dropped 69% YoY, with only five transactions completed during the first three months of the year. Just four companies debuted on regional exchanges, down from 12 IPOs in the same period last year. Collectively, they raised $296.6 million, making it the weakest first quarter for IPO proceeds since 2018, according to the report.

Christopher Laing, Head of ECM at EFG Hermes’ Investment Banking, told Zawya that Q1 issuance was disrupted by a combination of events such as Ramadan starting in mid‑February and heightened regional geopolitical turbulence.

Kuwait’s Trolley General Trading emerged as the largest transaction of the quarter, raising $194.1 million and propelling the retail sector to the top of the IPO rankings with $289.0 million in total proceeds, the report said. Meanwhile, follow‑on offerings sank to a three‑year low, generating just $131.3 million.

IPOs by Saudi Arabia’s Saleh Abdulaziz Al Rashed & Sons Company and Gourmet Egypt were some of the other ECM deals in Q1.

According to Laing, a typical IPO requires around two weeks of investor education and management roadshows, a period during which market conditions can shift significantly. As a result, many issuers are opting to wait for greater clarity around the conflict and a pullback in volatility before proceeding.

Investor appetite is expected to be strong once conditions stabilise, supported by the region’s solid economic fundamentals and a high‑quality pipeline of companies preparing to list, Laing said.

“Sectors such as oil and gas, petrochemicals and fertilisers are best positioned to benefit from the conflict, provided companies can maintain exports”, Laing said.

“Hospitality and aviation sectors have been among the most heavily affected and are likely to require more time to recover,” he said, adding that “real estate stocks have seen a sharp sell‑off, but underlying fundamentals remain intact”.

Construction activity is continuing as planned and investors are proceeding with staged payments, supporting expectations of a strong recovery in share prices over the near term, he noted.

EFG Hermes topped the MENA ECM underwriting league table, capturing a 29% market share and generating proceeds worth $125 million, according to the report. Kuwait-based investment firm National Investment Company was ranked second with a market share of 22.7% with proceeds totalling $97.1 million. LSEG Investment Banking fees are imputed for all deals without publicly disclosed fee information.

(Reporting by Ahmad Mousa; editing by Seban Scaria) ahmad.mousa@lseg.com