Saudi Arabia leads Q2 2019 IPO activity in MENA region

Saudi Arabia led the initial public offering  (IPO) activity in the MENA region with three listings on the main market in Q2 2019, with net proceeds of $1.02 billion, EY said in its recent report.

Arabian Centres Company was one of the largest IPOs in the Kingdom with proceeds of $658.7 million, and was the first IPO that allowed the sale of securities to qualified institutional buyers in the United States, it noted.

Maharah Human Resources Company and Shuaa REIT Fund raised IPO net proceeds of $207.0 million and $157.7 million respectively.

On the other hand, the UAE witnessed the cross-border listings of two fintech companies on the premium segment of the London Stock Exchange, raising net proceeds of $1.8 billion during the April-June period. 

Network International Holdings raised $1.4 billion, while Finablr raised nearly $400 million with its listing in May.

Overall, the second quarter of the year saw MENA deal value rising by 223 percent to $2.8 billion, up from $874.9 million in the previous year. However, six deals were recorded, including one REIT listing, down from nine deals in Q2 2018.

“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. The IPO deal value raised in the first half of 2019 has already nearly surpassed the total deal value raised in 2018,” said Gregory Hughes, MENA IPO leader, EY.

Meanwhile, global IPO exchange activity continued to pick up in Q2, with 302 IPOs raising $56.8 billion, an increase of 47 percent in IPO volumes compared with Q1 2019, despite the US-China trade tensions and uncertainties related to Brexit. 

Health care, technology, and the industrial sector remained the top three sectors by the number of IPOs issued during the second quarter, the report said.