MENA region saw 14 IPOs raise US$2.5b in Q2 2025
IPO momentum to continue across the MENA region with 14 companies intending to list during H2 2025, including 10 from KSA and offerings from non‑GCC markets
Dubai, UAE: According to the latest EY MENA IPO Eye report, markets in the MENA region saw 14 IPOs during Q2 2025, raising US$2.5b in proceeds. This marks a 4% increase in capital raised when compared to Q1 2025, demonstrating sustained investor appetite and the resilience of regional capital markets.
In the Kingdom of Saudi Arabia (KSA), the second quarter's largest IPO was flynas, which debuted on the Tadawul Main Market and accounted for 44% of Q2's total proceeds. This was followed by Specialized Medical Company, which raised US$500m, and United Carton Industries Company with US$160m.
In the United Arab Emirates (UAE), the Dubai Financial Market (DFM) welcomed Dubai Residential REIT, which raised US$584m. The listing marks a significant milestone as the largest Real Estate Investment Trust (REIT) by market capitalization in the GCC and the first pure‑play residential leasing REIT in the region.
Brad Watson, MENA EY ‑ Parthenon Leader, says:
'The second quarter of this year has reinforced the MENA region's position as a resilient and dynamic IPO market. In spite of investors practicing caution, we have seen strong growth. The diversity of sectors represented, along with milestone listings such as Dubai Residential REIT, highlights the depth of opportunities across the region. With a healthy pipeline for the remainder of 2025, we expect this momentum to continue.'
While after‑market performance varied, with 10 of the 14 IPOs closing below their offer price on debut, five listings recorded gains, reflecting a cautious investor sentiment. Companies are increasingly strategic about market timing, carefully assessing investor sentiment and macroeconomic conditions before going public.
In terms of equity market performance, the Boursa Kuwait Premier Market Index led regional gains in Q2 2025, rising 17.2%, while other markets posted mixed results.
Shift toward secondary listings
The nature of IPO proceeds in Q2 2025 reflects a notable shift, with secondary listings accounting for 64.3% of all IPOs, up from 35.7% in Q1 2025. This suggests a preference among issuers for shareholder exits over new capital raising, further demonstrating a more cautious approach amid ongoing market uncertainty.
Gregory Hughes, MENA EY-Parthenon IPO Leader, says:
'KSA continues to set the pace for IPO activity in the MENA region, attracting strong interest across multiple sectors. At the same time, landmark transactions in the UAE show how regional exchanges are evolving to meet the needs of a broadening investor base. This diversity, combined with continued enhancements in market governance, is key to sustaining long‑term growth.'
The outlook for MENA IPOs in the second half of 2025 remains strong, supported by a healthy pipeline of 14 planned listings across a range of sectors. KSA continues to lead with 10 anticipated offerings, while upcoming activity from Egypt, Tunisia, and Morocco highlights the region's expanding market depth and diversification.
Mehak Shajin
Associate Manager
M +971 50 389 8914
E mshajin@webershandwick.com
MCN Hive, 4th Floor, Barsha Heights – Section C
P.O. Box 50197, Dubai, UAE
webershandwickmenat.com
webershandwick.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
2 hours ago
- Khaleej Times
Talabat lifts 2025 outlook after strong growth in Q2
Talabat Holding has reported strong financial results for the second quarter of 2025, prompting the Mena region's leading online ordering and delivery platform to raise its full-year guidance. The company posted a 32 per cent year-on-year increase in gross merchandise value (GMV) to $2.4 billion, with revenue up 35 per cent to $982 million. On a constant currency basis, GMV growth reached 33 per cent and revenue climbed 36 per cent. Adjusted Ebitda rose 31 per cent to $166 million, maintaining a 6.8 per cent margin, while net income jumped 33 per cent to $119 million, or 4.9 per cent of GMV. Adjusted net income, excluding non-recurring items, grew 25 per cent to $116 million, representing a margin of 4.8 per cent despite higher corporate income tax rates in the GCC. Strong cash generation saw adjusted free cash flow rise by 47 per cent to $190 million, equivalent to 7.8 per cent of GMV. Performance was driven by top-line growth across GCC markets — including the UAE, Kuwait, Qatar, Bahrain and Oman — as well as non-GCC markets such as Egypt, Jordan and Iraq. Both the Food and Grocery & Retail verticals delivered strong results, supported by accelerated customer acquisition, increased order frequency, and a surge in adoption of the Talabat pro premium subscription programme. The UAE, Talabat's largest market, maintained growth in line with the overall group, while Kuwait, its most established market, delivered over 20 per cent growth for both the quarter and the first half. The company also reported a favourable shift in its GMV geographical mix, with non-GCC markets rising to 17 per cent of total GMV from 14 per cent a year earlier. The GMV-to-revenue conversion ratio improved to 40 per cent from 39 per cent, driven by a higher share of tMart and subscription revenues. Although gross profit margins were impacted by a product mix shift, these were offset by improved cost efficiencies. In light of the strong momentum, Talabat has revised its 2025 guidance upward. It now expects GMV growth of 27–29 per cent on a constant currency basis, compared with the earlier forecast of 17–18 per cent, and revenue growth of 29–32 per cent versus the previous 18–20 per cent. Adjusted Ebitda margin is projected at 6.5 per cent, net income margin at 5.0 per cent, and adjusted free cash flow at 6.0 per cent. Chief Executive Officer Tomaso Rodriguez said the results reflect Talabat's success in expanding its groceries and retail verticals, strengthening customer loyalty, and sustaining strong growth in both core GCC and newer non-GCC markets. He added that the company's outlook for the remainder of 2025 remains strong across all operating metrics.
Khaleej Times
2 hours ago
- Khaleej Times
Empower's district cooling consumption on strong demand, expansion
Emirates Central Cooling Systems Corporation (Empower), the world's largest district cooling services provider, reported a 7.1 per cent increase in consumption during the first half of 2025 compared to the same period in 2024. The growth, measured in refrigeration tons per hour (RTh), was attributed to high occupancy rates in existing projects and the addition of new developments to the company's portfolio. Empower said in a statement that the expansion has further diversified its customer base, which includes residential, commercial, hospitality, healthcare, retail, entertainment, and other sectors. These industries are increasingly adopting energy-efficient cooling solutions to reduce carbon emissions and align with sustainability goals. The company signed 86 new contracts in the first six months of the year to supply more than 99,000 refrigeration tons (RT) to projects across Dubai. With these additions, Empower's total contracted capacity reached 1.86 million RT, while connected capacity grew to more than 1.6 million RT following an increase of approximately 38,000 RT. The number of buildings served rose to 1,684. Ahmad bin Shafar, CEO of Empower, said the company's performance underlines its role in supporting Dubai's growth and sustainability agenda. 'We are committed to delivering district cooling services of the highest quality and reliability, leveraging advanced technologies and innovations,' he said. 'Our operations support Dubai's population growth, urbanisation, and economic development, while contributing to the emirate's green future and net zero goals,' Ahmad bin Shafar said. He added that the steady rise in consumption reflects customers' trust in Empower's ability to help reduce their carbon footprint and implement sustainable practices. 'The increase in demand and expansion of our customer base is a testament to the efficiency of our services. This motivates us to maintain quality while further growing our business and partnerships for the benefit of all stakeholders,' Shafar said. Shafar noted that Empower's readiness to meet rising demand in H1 2025 was due to its state-of-the-art district cooling systems, high operational efficiency, and advanced technologies. These factors, combined with significant capacity, enabled the company to serve a diverse range of sectors effectively. Ahead of the peak summer season, Empower carried out an extensive maintenance and preparation campaign across its 88 district cooling plants and distribution networks. This ensured operational readiness to meet the seasonal surge in demand, particularly during periods of high temperatures. The measures helped maintain a comfortable indoor environment for residents and businesses across also highlighted that district cooling consumption in Dubai has increased by approximately 69 per cent between 2020 and 2024. This long-term growth trend remains a key driver for the company's ongoing network expansion, as well as its revenue growth and profitability.
Arabian Business
3 hours ago
- Arabian Business
Dubai Chamber welcomes 35,500 new companies as exports hit $47bn in H1 2025
Dubai Chamber of Commerce has reported strong growth in the first half of 2025, welcoming 35,532 new member companies — a 4 per cent year-on-year increase — and driving member exports and re-exports to AED171.9bn ($46.8bn), up 18 per cent compared to H1 2024. The performance reinforces Dubai's position as a global hub for trade and investment, backed by targeted initiatives to boost international market access and strengthen public-private partnerships. Record gains in trade activity and business support in this time include: Certificates of Origin issued: 409,083 (Up 10 per cent YoY) ATA Carnets processed: 2,961, covering goods worth AED1.94bn ($528m) New Business Councils formed: Five, representing Brazil, Slovakia, Peru, Indonesia, and Hungary Mediation cases handled: 94 (Up 19 per cent YoY), valued at AED213.5m ($58.1m) Sultan bin Saeed Al Mansoori, Chairman of Dubai Chambers, said: 'The emirate continues to strengthen its position as a leading global centre for trade and investment. Dubai's integrated business ecosystem plays a pivotal role in reinforcing investor confidence in the positive outlook of the national economy. 'We are committed to empowering the local business community by shaping a regulatory and legislative environment that fosters growth, creates opportunities, and supports the development of priority sectors. 'The chamber will continue to strengthen its efforts to enhance public-private partnerships, which form a key pillar in achieving the goals of the D33 Agenda.' Dubai Chamber of Commerce growth The chamber's 'New Horizons' initiative enabled 60 local companies to expand into new markets in H1 2025 — a 76 per cent rise from last year. Trade missions to Thailand, the Philippines, Angola, and Mozambique generated 1,076 B2B meetings between Dubai firms and international partners. Working closely with Business Groups, the chamber reviewed 27 laws and draft laws, with 60 per cent of private-sector recommendations adopted — up from 46 per cent in 2024. It also held 98 meetings with Business Groups and Councils, marking a 104 per cent increase in engagement. Through the Dubai Centre for Family Businesses, the chamber partnered with Dubai's Department of Economy and Tourism to publish 'Family Businesses in the Emirate of Dubai: A Guidebook,' offering best practices for preserving wealth and ensuring long-term continuity. The Chamber's H1 2025 performance highlights sustained momentum in attracting businesses, expanding global trade links, and shaping a supportive legislative framework — aligning closely with the emirate's D33 Agenda to double the size of the economy over the next decade.
