Mena IPO deals rocket 222.6%

dubai — The value of initial public offerings (IPOs) across the MIddle East and North Africa region soared 222.6 per cent to $2.82 billion in the second quarter of 2019, up from $874.9 million in the same period last year, according to the latest EY Mena

IPO Eye report.

Six deals were recorded in AprilJune 2019 quarter, including one Reit listing, a decrease of 33.3 per cent from the nine deals listed in same quarter last year 2018. The second quarter of the year witnessed a sizeable improvement in IPO activity, both in volume and value, when compared to a single IPO that raised $57.6 million in first quarter of 2019.

“The increase in IPO activity across the Mena region during the second quarter of this year, which included two cross-border listings, is proof that companies are still keen to execute IPOs and gain access to international investors and stock markets,” said Gregory Hughes, Mena IPO leader at EY.

“The IPO deal value raised in the first half of 2019 has already nearly surpassed the total deal value raised in 2018.”

Saudis lead activity

Saudi Arabia led the IPO activity in the Mena with three listings on the main market in the second quarter of 2019 with net proceeds of $1.02 billion.

Arabian Centres Company, one of the largest IPOs in the country with proceeds of $658.7 million, was the first IPO that allowed the sale of securities to qualified institutional buyers in the United States. Maharah Human Resources Company and Shuaa Reit Fund raised IPO net proceeds of $207 million and $157.7 million, respectively. The UAE witnessed the cross-border listings of two fintech companies on the premium segment of the London Stock Exchange, raising net proceeds of $1,797.9 million in the second quarter.

Network International Holdings raised $1.4 billion when listed in April and Finablr raised $397.9 million with its listing in May.

In addition, the Securities and Commodities Authority had also published the proposed amendments in 2019 to facilitate the onshore listing of free zone companies in the UAE.

The increase in activity... is proof that firms are still keen to execute IPOs and gain access to Gregory Hughes, int’l investors and Mena IPO stock markets leader at EY