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Announced M&A deals involving any Mena are worth $85.2 billion by 2022, 31% lower than the value recorded in 2021, Refinitiv, a unit of LSEG, said in a new report.
Despite falling values, the number of deal announcements in the region was up 6% from last year, reaching the highest full-year total since we began keeping records in 1980, according to MENA Investment Banking analysis for 2022.
Deals involving Mena targets totaled $49.3 billion in 2022, down 42% from last year and hitting a four-year low.
The number of deals was up 1% from last year, marking the highest full-year deal count ever recorded. Inbound deals involving non-MENA acquirers fell 77% from last year’s record to $13.4 billion, while the value of domestic deals rose 28% to $36.0 billion. Outbound M&A in the Middle East and North Africa totaled $31.9 billion, up 6% from the value recorded in 2021 and a seven-year high.
The industrial sector was the most active, with deals targeting industrial companies accounting for 23% of MENA targeted M&A in 2022, followed by the financial sector at 22%. The United Arab Emirates was the most targeted country, followed by Saudi Arabia and Egypt.
Citi tops the list of M&A financial advisors announced for 2022 with any Mena involvement.
Equity Capital Market
Equity and equity-related issuance in the MENA region will total $23.4 billion in 2022, the highest annual total since 2019. Compared to 2021, companies in the region have raised 59% more capital, while the number of issuances has increased by 55%. Initial public offerings accounted for 87% of activity, while follow-on offerings accounted for 13%.
There will be 50 IPOs in 2022, more than double from a year earlier and the highest since 2007. Together they raised $20.3 billion, an annual record for the region. DEWA raised $6.1 billion in an initial public offering in April. The national utility’s initial public offering is the third-largest global IPO so far this year and the second-largest Mena IPO ever.
The energy and power sector was the most active, with issuers raising $9 billion, or 39% of total equity funding in the region. The retail and materials industries followed with 17% and 12% respectively. HSBC tops Mena ECM underwriting leaderboard for 2022 with 18.6% market share, followed by Saudi National Bank SJSC
debt capital market
In 2022, MENA bond issuance totaled $37.3 billion, down 65% from the value recorded in 2021 and the lowest full-year total since 2011. The number of releases was down 41% from last year. Issuers in the region raised $15.6 billion in the final three months of 2022, the highest quarterly total in six quarters, after raising just $3.4 billion in the third quarter of 2022.
The UAE was the most active issuer in 2022, accounting for 42% of total bond proceeds, followed by Saudi Arabia (40%), Qatar (10%) and Bahrain (3%). Financial issuers account for 67% of funds raised in 2022, while government and institutional issuers account for 25%. Sukuk raised $12.2 billion in 2022, down 55% from 2021 and a seven-year low.
Sukuk will account for a third of the region’s total bond proceeds in 2022, compared with a quarter in 2021. HSBC topped the MENA bond bookrunner rankings for 2022, with related proceeds of $5.7bn, a 15% share of the market. HSBC also ranks first in the 2022 MENA Sukuk Leaderboard.
investment banking fees
According to the report, the Middle East and North Africa region is estimated to have incurred investment banking fees worth $1.6 billion during 2022, the highest annual total since we began keeping records in 2000. Compared to 2021, fees in the region increased by 5%, while global investment banking fees fell by 33%.
Advisory fees earned on completed M&A transactions in the region reached $509.6 million, up 35 percent from last year and the highest annual total since we began keeping records in 2000. Equity capital markets underwriting fees are also at an all-time high, up 31% YoY – reaching $450 million YoY in 2022.
Fees on syndicated loans fell 3 percent to a three-year low of $521.2 million, while debt capital markets fees fell 54 percent to $124.9 million, the lowest full-year total since 2015. MENA fees account for 1.5% of global investment banking fees in 2022, the highest share since 2008. Saudi Arabia generates 38% of MENA expenses in 2022, followed by the United Arab Emirates (35%). HSBC Holdings Plc earned the most investment banking fees in the region in 2022, totaling $120.3 million, or 7.5% of the total fee pool. – trade arab news agency
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