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MENA equity capital markets (ECM) raised $14.5 billion from 42 offerings in 2021, a 193 percent increase in proceeds from last year and a 13-year-high in the number of ECM deals, according to Refinitiv data.
IPOs raised $8.2 billion in 2021, accounting for 56 percent of total proceeds, a 341 percent increase from 2020. Follow-on issuances totalled $5.1 billion in 2021, a 65 percent increase from last year and a thirteen-year high.
The largest equity offering of the year was Saudi Telecom’s follow-on issuance of $3.2 billion after the sovereign wealth fund, Public Investment Fund, sold 6 percent of its stake. This was followed by ACWA Power International’s IPO which raised $1.2 billion. Abu Dhabi ADNOC Distribution raised $1.19 billion in a convertible bond sale. Also, in an IPO of a part of its drilling subsidiary, ADNOC raised $1.10 billion. Finally, the Saudi Tadawul Group Holding Co. raised just over $1 billion in share sale.
Saudi Arabia was the most active country with $8.9 billion in ECM proceeds followed by United Arab Emirates with $4.3 billion.
In terms of sector profiles of the issuers, Energy and Power took the top spot, with total proceeds at $4 billion. Telecommunications with around $3.25 billion was next, followed by Financials at $2.5 billion.
Among the banks involved in deals, Citi takes the top spot in the MENA ECM league table advising on $2.5 billion of deals. HSBC followed advising on $1.7 billion of deals.
(Writing by Brinda Darasha; editing by Seban Scaria)
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