MENA raises $22bln with record 51 IPOs in 2022: EY

The Mena region saw a record number of IPOs in 2022 with 51 IPOs and combined proceeds of $22 billion, said professional services firm EY in a new report. The year witnessed a 143% increase in the number of listings when compared to the 21 announced in 2021, and a 179% hike in value when compared to last year, according to the EY Mena IPO Eye Q4 2022 report. The strong run across the Mena region’s markets included 20 IPOs in Q4 2022 that raised $7.3 billion in proceeds. In terms of value, Q2 2022 was the strongest quarter with $9.2 billion in proceeds raised across nine IPOs. Brad Watson, EY Mena Strategy and Transactions Leader, said: “Mena IPOs had a stellar 2022, with interest and liquidity in the region continuing to defy global trends. The number of IPOs in Q4 2022 was the highest at 20; however, Q2 marked the highest proceeds with the listing of Dubai Electricity and Water Authority (Dewa) on the Dubai Financial Market (DFM) which raised a record $6.1 billion. The year to watch will be 2023 as there is a healthy IPO pipeline across the region against the backdrop of a challenging and volatile global economic environment.” Globally, 2022 saw a total of 1,333 IPOs raising $179.5 billion in proceeds, a 45% decrease in volume and 61% decrease in value year-on-year. In contrast to the record-breaking 2021, IPO activity hit long-term lows by volume and value across several regions, with the strongest downward trend observed in the Americas. The Mena region, however, continues to buck the trend, with listings remaining strong until end-2022, and a positive outlook for 2023. Several companies have already announced their IPO plans for the new year. Mena equity performance experienced volatility throughout 2022 due to rising interest rates, inflation, and geopolitical unrest, which impacted investor sentiment. At the closing of the year, 24 out of the region’s 51 IPOs had a negative return compared to their IPO price. Saudi Arabia witnesses an increase of listings The Kingdom of Saudi Arabia (KSA) continued to dominate listing activity in Q4 2022. This included seven IPOs on the Saudi Exchange (Tadawul) Main Market, raising $4.7 billion in proceeds, and six IPOs raising $65.2 million as well as two direct listings on the Nomu – Parallel Market. The largest public offering belonged to Saudi Aramco Base Oil Company (Luberef), which raised $1.3 billion – an amount that alone exceeded the total value of Saudi listings for Q3 2022. Meanwhile, Americana Restaurants International PLC (Americana) brought a first-time dual offering and concurrent IPO on Abu Dhabi Securities Exchange (ADX) and the Tadawul. In total, the company offered 30% of the equity to raise $1.8 billion. UAE sees Mena’s largest IPO in Q2 2022 In the UAE, Dewa raised $6.1 billion in Q2 2022, becoming the largest Mena IPO for the year in terms of proceeds raised. In Q4 2022, ADX welcomed three listings – Americana, Burjeel Holdings PLC, and Bayanat AI PLC, which raised a total of $14.0 billion. Furthermore, there were two new listings on DFM – Emirates Central Cooling Systems Corporation (Empower), raising $724.1 million, and Taaleem Holdings PSC with $204.2 million. IPO activity on the rise across the wider region Despite a lower number of IPOs and trading volumes, the Egyptian Exchange (EGX) outperformed the largest GCC markets – Tadawul and ADX – in 2022 with an annual gain of 22.2%. The fourth quarter of 2022 saw an increase in IPO activity across the wider Mena region with smaller listings in Oman, Morocco, and Tunisia. The IPO of Pearl Real Estate Investment Fund (Pearl REIF) raised $60.7 million on the Muscat Stock Exchange (MSX), Akdital Holding S.A. raised $75.6 million on the Casablanca Stock Exchange, and Assurances Maghrebia Vie S.A. raised $14.6 million on the Tunis Stock Exchange. Gregory Hughes, EY Mena IPO and Transaction Diligence Leader, said: “The year 2022 marked a record year for Mena IPOs with a year-on-year growth of 179% in total proceeds raised from both state-owned and private companies. The region is coming together with the recent first-time regional dual listing and concurrent IPO of Americana Restaurants on ADX and Tadawul, and announced collaborations with regional and international exchanges, as well as a unified set of ESG Disclosure Metrics by the GCC Exchanges Committee. “The question remains whether the global economic outlook and lower GDP forecasts for the Mena region will impact expected listings for 2023 despite the pipeline of large government-backed and private company IPOs.” Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

MENA raises $22bln with record 51 IPOs in 2022: EY

DISCOVER MORE

Jazeera Airways approves 50% cash dividend for the second half of 2022

Financials lead Indian shares higher, Adani stocks rebound

Wednesday Outlook: Asian stocks rally as banking anxiety eases; dollar on the defensive

US Stocks: Wall Street ends down with tech; investors assess bank comments

Asian stocks rally as banking anxiety eases; Alibaba surges

UAE bourses close in green on Tuesday

Mideast Stocks: Most Gulf stocks end higher as oil prices firm; Saudi retreats

Lyft shares jump as Wall Street welcomes CEO change

BP and UAE's ADNOC bid for stake in NewMed Energy

UAE banking sector to remain stable in 2023 – KPMG

UAE approves 24 national initiatives to double re-export industry

Saudi’s fintech sector starts to rival UAE, Egypt as number of firms nearly doubles

Saudi banks likely to remain profitable in 2023 – A&M

Alibaba to split into 6 groups, separate IPOs expected

India's Oyo mulls cutting IPO size amid tech rout

Indian skincare firm Mamaearth's parent puts IPO on hold - sources

UAE exchange firm Al Ansari raises $210mln in IPO

UAE exchange firm Al Ansari upsizes IPO on strong investor demand

LATEST VIDEO

VIDEO: Why is China's Belt and Road Initiative facing setbacks?

ZAWYA COVERAGE

AI may affect 300mln full-time jobs: Goldman Sachs

Five African cities hold more than 50% of continent's private wealth

UAE approves 24 national initiatives to double re-export industry

Saudi Industrial Investment Group to acquire stake in Danish firm Unibio for $70mln

Indian rupee drops against UAE dirham as oil prices firm up

UAE: Gold prices drop as concerns about global banking crisis ease

Britain's Next stays cautious on outlook after profit rise

Investors seek value in clobbered U.S. regional bank shares

If TikTok is banned, brace for epic First Amendment fight

THE BRI REPORT

China is reshaping the Belt and Road Initiative ahead of a post-pandemic era

DISCOVER MORE

LATEST VIDEO

ZAWYA NEWSLETTERS

ZAWYA COVERAGE