Two MENA IPO deals in Saudi Arabia and Egypt raise $190mln in Q3 2019: EY

MENA IPO deal value in Q3 2019 declined by 45.3% when compared to Q3 2018

  • Saudi Arabia sees listing of family owned company Ataa Educational Company on stock exchange
  • Egypt leads in deal value with US$97.0m listing of Fawry for Banking Technology and Electronic Payments S.A.E.

Dubai, UAE: According to the EY MENA IPO Eye Report, Initial Public Offering (IPO) deal value in the Middle East & North Africa (MENA) region decreased by 45.3% to US$190.0m in Q3 2019, down from US$347.3m in Q3 2018. Two deals were recorded in the Kingdom of Saudi Arabia (KSA) and Egypt in Q3 2019, a decrease of 50% from the four deals listed in Q3 2018.

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

“The global market as well as the MENA market witnessed a quieter third quarter in 2019 as far as Initial Public Offerings (IPOs) were concerned. Nevertheless, a backlog has grown during that time and as we enter the traditionally peak season, and IPO activity is expected to pick up in Q4 2019 and into 2020 as there hopefully becomes more clarity around global geo-political developments, including US-China-EU trade relations, Hong Kong, and Brexit.”

Egypt leads in IPO deal value in Q3 2019

Egypt led IPO value with its listing of Fawry for Banking Technology and Electronic Payments S.A.E., a company in the e-payments sector, raising US$97.0m in August 2019. The listing was oversubscribed by 30.3 times. The listing was the first IPO of a private company on the Egyptian Stock Exchange since Sarwa Capital in October 2018.

The current economic boost in Egypt has been hailed by investors since the country registered a growth of 5.6%, the highest economic growth since June 2010. Furthermore, inflation eased in August and reached its lowest rate since 2013.

Saudi Arabia encourages family owned companies to list on domestic market

The city of Riyadh has been encouraging more family owned companies to list on the domestic stock market. In July 2019, Ataa Educational Company, one of Saudi Arabia’s biggest private school operators, raised US$93.0m with its listing – the fourth listing in Riyadh this year.

Gregory Hughes, MENA IPO Leader, EY, says:

“IPO listings in the MENA region may have slowed down during the third quarter of this year versus the prior year, but there remains a strong pipeline of companies finalizing the details of their listing for a launch in the next twelve months both regionally and internationally.”

GCC countries update regulations to attract foreign investors

The Securities and Commodities Authority of the United Arab Emirates is planning a host of measures to help boost investor confidence. These measures include setting up a platform for unprofitable firms, mandating that at least one female member is on the board of listed companies, and requiring that all firms have a board of directors with the appropriate expertise, knowledge, and independence standards.

In an effort to promote foreign investment in domestic companies, Oman is planning to implement a new regulation whereby there will be no upper capital limit for foreign investors. The regulation is expected to come into effect from January 2020.

In Kuwait, non-oil related activity has shown signs of recovery, due to expansionary government budget and accommodative monetary policy. Credit growth was 5.2% in H1 2019 and has further been boosted by improvement in business lending, low inflation, and lower interest rates.

Global IPO activity slows down in Q3 2019

Global IPO exchange activity was relatively slow compared to Q3 2018 with the total number of deals down by 24% and proceeds down by 22%. Globally, Q3 2019 witnessed 256 IPOs raising US$40.2b. Technology, healthcare, and industrials remained in the top three sectors by the number of IPOs issued. Although global deal numbers are down, first-day returns on the main markets globally were broadly positive.


Follow us on Twitter @ey_mena
Sarah Afifi                                                    Ewan Abbasi
MENA Public Relations                                   MENA Public Relations
+971 4 332 4000                                         +971 4 332 4000                          

EY | Assurance | Tax | Transactions | Advisory

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via For more information about our organization, please visit 

The MENA practice of EY has been operating in the region since 1923. For over 90 years, we have grown to over 7,500 people united across 21 offices and 16 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

© Press Release 2019

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