MUSCAT: The Middle East and North African (MENA) market saw a total of 54 initial public offerings (IPOs) in 2024, raising $12.6 billion in total. When compared to 2023, last year recorded a 12.5 per cent increase in the number of IPOs and a 17.6 per cent rise in proceeds, according to the EY MENA IPO Eye Q4 2024 report.

The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings PLC that were listed during the last quarter of the year.

Brad Watson, EY MENA Strategy and Transactions Leader, commented: “The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market. The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity. The market is also anticipating the Arena platform from the DFM, which is expected to launch in 2025.”

During Q4 2024, 25 IPOs raised $7.9 billion, which represents a 32 per cent increase in number and a 59.4 per cent surge in proceeds when compared to Q4 2023.

Talabat Holding plc, which listed on the Dubai Financial Market (DFM), raised the highest proceeds, contributing 25.8 per cent of the overall proceeds for Q4 2024. It was followed by OQ Exploration & Production, which listed on the Muscat Stock Exchange (MSX) and raised $2.0 billion - the largest IPO in Oman to date - and accounted for 25.3 per cent of the total quarterly proceeds.

The Kingdom of Saudi Arabia (KSA) dominated the region’s IPO activity with 17 out of the 25 listings in Q4 2024, with total proceeds of $1.2 billion. Five IPOs took place on the Tadawul Main Market with total proceeds of $1.1 billion. Arabian Mills for Food Products Company and United International Holding Company marked the highest proceeds at $0.3 billion each. The remaining 12 IPOs, raising $119 million in total, were listed on the Nomu – Parallel Market.

In the United Arab Emirates (UAE), the Abu Dhabi Securities Exchange (ADX) welcomed two IPOs in Q4 2024 with US$2.0b in combined proceeds. Lulu Retail Holdings PLC raised $1.7 billion, and ADNH Catering PLC raised $235 million. The ADX also saw a direct listing of Mair Group. In Dubai, the DFM had one new listing in Q4, Talabat Holding plc in the consumer and technology sector, raising $2.0 billion.

The outlook for MENA IPOs in 2025 remains positive, with 38 companies and 22 funds intending to list on the region’s exchanges across a variety of sectors. Among the GCC countries, KSA remains the lead in listings with 27 companies in the pipeline, followed by the UAE with three, and Qatar with one.

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