RIYADH: Saudi Arabia has solidified its position as the leader in the initial public offering (IPO) sector within the Middle East and North Africa (MENA) region, showcasing remarkable growth and resilience in the financial market.
In the third quarter of 2024 alone, the country successfully oversaw five IPOs that collectively raised approximately $0.93 billion, a significant year-on-year increase of 76.8%, as noted by Brad Watson, EY MENA Strategy and Transactional Leader.
The surge reflects the kingdom’s ongoing efforts to diversify its economy and attract foreign investment.
The recent IPO activity in Saudi Arabia underscores a strategic shift towards lessening reliance on oil revenues.
Notably, the kingdom accounted for three out of the five IPOs in the region, generating $27 million in proceeds primarily through its parallel equity market, Nomu.
Successful listings
The market has emerged as a vital platform for fundraising, particularly for the small and medium-sized enterprise (SME) sector. Gregory Hughes, EY MENA IPO Leader, emphasised that Nomu has become the stock exchange with the highest number of IPOs in 2024, reinforcing Saudi Arabia’s leadership in the MENA IPO landscape.
Among the notable IPOs in Saudi Arabia, Tharwah Human Resources Company raised $12 million, becoming the first consulting firm to list on the Nomu market.
Other successful listings included ASG Plastic Factory Company and Al Ashghal Almoysra Company, which raised $9 million and $6 million, respectively.
The influx of new listings highlights the growing confidence in Saudi Arabia’s financial markets and the potential for continued investment growth.
Further affirming its strength within the region, the UAE concluded the quarter with the largest IPO, as NMDC Energy raised $877 million ahead of its debut on the Abu Dhabi Securities Exchange. Meanwhile, Egypt marked a resurgence in its IPO activity with Act Financial’s listing, the first since 2022, signaling renewed investor interest.
Looking forward, the MENA region is poised for continued IPO activity, with 11 businesses and five funds already confirming their plans to list before the year-end. The financial landscape in the region is evolving, and Saudi Arabia remains at the forefront, illustrating a robust growth trajectory in its IPO market and an enduring commitment to economic diversification.
