[ad_1]
Professional services firm Ernst & Young said in a report that seven initial public offerings (IPOs) in the MENA region raised about $1.5 billion in the third quarter of this year (Q3), making the MENA region’s total for the year to date. The total number of IPOs reached 31. new report.
In the first nine months of this year, the number of listed companies in the region increased by 288% year-on-year, raising a total of $14.7 billion, a 550% increase from the same period last year, according to the latest EY Mena 2022 third-quarter report.
Globally, 992 IPOs have raised $146 billion so far this year, down 44% and 57% year-over-year, respectively, as companies and investors continue to face mounting macroeconomic challenges, market uncertainty, heightened volatility and global stock prices fell.
However, despite weaker global sentiment, the MENA region generally bucked the trend, with IPO activity and pipeline continuing to be strong.
Brad Watson, EY’s MENA Strategy and Transaction Leader, said: “While most other markets around the world saw significant declines in the number and value of IPOs, the MENA region continued to forge its own path, with a steady third quarter of new listings. Listed companies increased the number of large year-to-date IPOs announced on various exchanges. While Saudi Arabia and the United Arab Emirates accounted for the majority of new listings, we also saw some smaller markets in the region (notably Kuwait, Oman and Qatar) ) signs of future activity have increased.”
UAE sees largest IPO in region in Q3
In the UAE, Dubai’s exclusive toll booth operator Salik Company PJSC raised more than $1 billion, making it the largest MENA IPO in the third quarter and the fourth largest IPO in the region so far in 2022. The IPO was oversubscribed by more than 49 times the total demand of $50.2 billion.
IPOs are also back in Morocco for the first time since last year, with Moroccan IT firm Disty Technologies SA raising around $17 million on the Casablanca Stock Exchange.
Saudi Arabia leads listing activity
The Kingdom of Saudi Arabia (KSA) dominated listing activity in the third quarter, with two IPOs in the main Tadawul market and three in the Nomu-Parallel market, raising $490 million in proceeds. Alamar Foods Company had the largest public offering, raising $326 million and the IPO order book was about 48 times oversubscribed.
Natchee Water raised $110 million, more than 30 times oversubscribed. In the remaining three IPOs in the Nomu-Parallel market, Saudi Networkers Services Ltd, International Human Resources and Naba Alsaha Medical Services raised a total of about $54 million.
Gregory Hughes, EY MENA Due Diligence Leader for IPOs and Deals, said: “This year has been a strong year for IPO and deal activity across the MENA region, with investors facing global financial headwinds notwithstanding Confidence remains high. As we enter the fourth quarter, we don’t see signs of that changing, and several high-profile companies in the region have completed IPOs.
“We also expect an increase in dual listing activity to take advantage of different liquidity pools; ongoing divestment processes by governments in the UAE, Oman and other countries, as well as the flow of family businesses that are believed to be planning to enter markets in different parts of the region .” – arab trade news agency
[ad_2]
Source link