EY: Five MENA IPOs raise US$30.0b in Q4 2019

Global IPO activity saw 353 IPOs raising US$84.5b in Q4 2019


According to the EY MENA IPO Eye Report, IPO deal value in the MENA region witnessed a sizeable increase during Q4 2019 both in terms of deal volume and value, with five IPOs raising proceeds of US$30.0b, compared with the two IPOs that raised US$190m in Q3 2019.

Global IPO exchange activity also continued to pick up in Q4 2019, with 353 IPOs raising US$84.5b, marking an increase of 25% in IPO volumes compared with Q1 2019.

Matthew Benson, MENA Transaction Advisory Services Leader, EY, says:

“Both the global market and the MENA market saw activity pick up during Q4 2019 – the trend over multiple quarters indicates a recent slowing down in overall IPO activity, however in the MENA region, this has been driven by the decline in REITs and Nomu listings in Saudi Arabia since 2017 and 2018, and IPO activity has remained broadly stable year-on-year.”

Aramco listing in Saudi Arabia the largest IPO on record

The Saudi Arabia Oil Company (Saudi Aramco) led the IPO activity by issuing 1.5% of its equity shares initially in a deal that raised US$25.6b. The value further increased after the oil giant issued 450m additional shares worth US$3.8b via a green-shoe option, taking the total proceeds to US$29.4b - or 1.7% of its shares. The deal made it, worldwide, the largest IPO on record by proceeds.

Kuwait lists first IPO since 2008

In Kuwait, Boursa Kuwait, formerly known as the Kuwaiti Stock Exchange, raised US$33.0m by issuing 50% of its own shares in October 2019. This was the first IPO in Kuwait since Kuwait Telecom Company raised US$98.0m in 2008.

Kuwait is the latest in the GCC market to join Emerging Market status. As it has met all the requirements, reclassification of the MSCI Kuwait Index from Frontier to Emerging Market status will happen as part of the May 2020 Semi-Annual Index Review.

Oman lists MPC IPO, loosens foreign investment restrictions

Musandam Power Company SAOG (MPC) led the IPO activity in Oman, by issuing 40% of its equity shares on the Muscat Securities Market in a deal that raised US$23.1m in November 2019.

Oman’s Capital Market Authority has approved the first prospectus of Aman REIT, which allows foreign investors to own real estate in the sultanate indirectly. Oman’s new Foreign Capital Investment Law awards investors incentives, privileges, and guarantees, which include 100% foreign ownership, minimal capital requirements, and no fundamental changes in the investment project without ministry approvals.

Egypt lists third IPO of the year, calls for the listing of military firms

Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) S.A.E., an Egyptian pharmaceutical company, was the third company to go public on the Egypt Stock Exchange in 2019. Rameda’s IPO was oversubscribed 117% and raised US$108.7m. The other two companies were Fawry, which made its trading debut in Q3 2019, and Speed Medical Company which listed in Q2 2019.

The Egyptian Government has called for the listing of its military firms on the Egyptian Stock Market in an effort to increase transparency. This will potentially raise several billion Egyptian pounds as part of the state privatization plan to raise funds for economic and strategic expansion.

Gregory Hughes, MENA IPO Leader, EY, says:

“Until the Saudi Aramco IPO, economic challenges continued to impact investor confidence in the region in 2019. Though the recent MSCI and FTSE inclusions, privatization drives, and government initiatives from GCC countries and Egypt are promising, both businesses and investors will be proceeding with caution during the first half of 2020.”

© Press Release 2020

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases