Latest news with #GregoryHughes
Zawya
06-05-2025
- Business
- Zawya
MENA region saw 14 IPOs valued at US$2.1bln in Q1 2025
KSA's Umm Al Qura for Development & Construction raised the highest proceeds with US$523m Across the MENA region, 21 companies have announced their intention to list during 2025 Dubai, UAE: According to the EY MENA IPO Eye Q1 2025 report, MENA markets saw 14 IPOs during Q1 2025, raising US$2.4b in proceeds. When compared year-on-year to the Q1 2024 listings, the number of IPOs increased by four, with a significant rise in proceeds of 106%. The IPOs in Q1 2025 were listed across the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE), and Oman. The listing for Umm Al Qura for Development & Construction raised the highest proceeds in the quarter, contributing 22% of the overall IPO proceeds, followed by Almoosa Health, which contributed 19%. Both companies are listed on the Tadawul Main Market in KSA. In terms of MENA stock exchange performance, the Boursa Kuwait Premier Market Index emerged as the top performer, recording a gain of 10.7%, followed by the Egyptian Exchange (EGX30), which saw an 8% gain. At the end of the quarter, 11 out of the 14 MENA IPOs showed a positive return compared to their IPO price. Brad Watson, MENA EY-Parthenon Leader, says: 'This year started on a positive note. MENA capital markets continue to show resilience, with the total IPO value more than doubling compared to the same period last year. KSA continues to dominate the MENA region's market in terms of activity as well as proceeds. In addition, the IPO pipeline for the rest of the year remains robust across various sectors and multiple countries.' KSA sees the MENA region's largest IPO for the quarter In KSA, the Tadawul Main Market welcomed the largest offering in the MENA region for Q1 2025 with Umm Al Qura for Development & Construction raising US$523m and contributing 22% of the overall IPO proceeds. This was followed by Almoosa Health Group, which accounted for 19% with US$450m, and Derayah Financial with US$400m. In the first quarter of the year, KSA led the region in IPO activity again, accounting for 12 out of the 14 listings. During this period, five IPOs took place on the Tadawul Main Market, generating total proceeds of US$1.8b, while the remaining seven IPOs listed on the Tadawul Nomu Parallel Market totaled US$69m. The Kingdom also witnessed one direct listing on the Tadawul Nomu Parallel Market with Twareat Medical Care Company (TMC). The IPO funds raised in KSA during Q1 2025 came from diverse sectors, with the largest contributions from real estate management (28%), healthcare equipment and services (24%), financial services (21%) and consumer discretionary distribution and retail (17%). UAE and Oman witness one listing each During Q1 2025, the UAE saw one IPO listed on the Abu Dhabi Securities Exchange (ADX) with Alpha Data PJSC, a company in the software and IT services sector, raising US$163m. Oman's Muscat Stock Exchange (MSX) witnessed one IPO, with Asyad Shipping Company SAOG raising US$333m. Gregory Hughes, EY MENA IPO and Transaction Diligence Leader, says: 'The increased demand for MENA listings has led to developments in market infrastructure through new products, enhanced governance standards, and a focus on transparency and accountability. The upward trajectory in the number of IPOs across the region reflects a wider trend of sector diversification, with investors and companies increasingly looking beyond traditional oil-based industries. In 2025, we can potentially expect to see an increase in IPOs from the technology sector, including online retail, FinTech, foodtech, and classifieds.' The outlook for MENA IPOs for the rest of 2025 remains positive, with 21 companies intending to list on the region's exchanges across various sectors. KSA remains the frontrunner, with 17 companies having received approval from the Capital Market Authority (CMA). In the UAE, three companies have announced their plans to list and outside the GCC, Egypt has announced one IPO.
Leaders
26-03-2025
- Business
- Leaders
Saudi CMA Eases Nomu Investment Rules to Boost Market
Saudi Arabia's Capital Market Authority (CMA) Ahas proposed major revisions to investor eligibility criteria on Nomu, its parallel market. The draft aims to simplify access for qualified investors and stimulate trading activity. Key changes include reduced financial thresholds and streamlined transaction requirements. The CMA plans to redefine 'Qualified Investor' terms, lowering minimum transaction values from SAR 40 million to SAR 30 million annually. Crucially, the mandatory 10 quarterly trades will be scrapped. Board members of Nomu-listed firms will now qualify as investors, broadening participation. Public Feedback Invited Until April 28 Interested stakeholders can submit opinions via the National Competitiveness Center's Public Consultation Platform until April 28. The CMA emphasized feedback will shape final amendments to enhance regulatory efficiency. Nomu has emerged as a hotspot for listings, with 28 IPOs and three direct listings in 2024 raising SAR 1.1 billion. EY reported 12 IPOs in Q4 2024 alone, securing $119 million. Gregory Hughes, EY MENA IPO and Transaction Diligence Leader noted, 'The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46% of the total IPO activity in that year. Nomu listings accounted for 50%, indicating robust activity in the junior Saudi market.' 2025 Listings Signal Continued Growth Eight firms debuted on Nomu in Q1 2025, including Ratio Speciality Company (RATIO) and Shmoh Almadi Co. Last week, Marketing Home Group, Qudra IT, and Hawyia Auctions secured listing approvals. Additionally, the reforms align with Saudi Arabia's push to diversify its economy and strengthen capital markets. Lowering barriers encourages retail and institutional participation, potentially accelerating Nomu's role as a hub for SMEs. With IPO momentum rising, simplified rules could attract more domestic and international investors. Prospective investors should review the draft criteria and participate in consultations. Companies eyeing Nomu listings can leverage eased rules to fast-track fundraising. The CMA expects finalized amendments to take effect post-feedback, further energizing Saudi's parallel market. Short link : Post Views: 6
Zawya
26-03-2025
- Business
- Zawya
Saudi's CMA proposes changes to Nomu investor categories
Saudi Arabia's Capital Market Authority has proposed a new draft to further develop the investor categories on Nomu to give a boost to the parallel market. The proposed changes aim to ease the criteria and requirements for investors to be eligible to trade and invest in the market. One of the key changes proposed is a revision of the term 'Qualified Investor' on Nomu, which limits investments on the parallel market to certain categories. The amendment will also ease the criteria imposed on individual investors looking to invest on Nomu. Under the proposed criteria, an investor would be required to have completed transactions amounting to 30 million Saudi riyals ($8 million) during the past 12 months, with the removal of the requirement to execute at least 10 transactions per quarter. Previously, the condition required completing transactions worth SAR 40 million through at least 10 transactions during the past 12 months. The CMA stated the changes are expected to have a positive impact on the market and has requested interested parties to participate with their feedback on the proposed changes by April 28. The proposed changes come at a time when Nomu is witnessing a flurry of IPOs. According to Saudi Exchange (Tadawul) data, Nomu witnessed a total of 28 IPOs and three direct listings in 2024, with a total value of SAR 1.1 billion. An EY report stated a dozen of these IPOs were listed in the fourth quarter alone, raising a total of $119 million. 'The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46% of the total IPO activity in that year. Nomu listings accounted for 50%, indicating robust activity in the junior Saudi market,' Gregory Hughes, EY MENA IPO and Transaction Diligence Leader, said earlier. The first quarter of 2025 has seen eight IPO listings on Nomu, according to exchange data, with the latest being Ratio Speciality Company for Trading (RATIO) began trading on March 9. Others listed this year include Shmoh Almadi Co., ITMAM Consulting, Alshehili for Metal Industries and Twareat Medical Care, Basma Adeem Medical (Smile Care), Lamasat, and Hedab Alkhaleej Trading. Last week, Marketing Home Group Company, Qudra for Communications and Information Technology Co. and Hawyia Auctions Co. also won approvals to go ahead with a Nomu listing. (Reporting by Bindu Rai, editing by Seban Scaria)
Arab News
15-02-2025
- Business
- Arab News
Saudi Arabia to lead region's initial public offerings in 2025 — EY
RIYADH: The outlook for initial public offerings in the Middle East and North Africa region remains positive in 2025, with Saudi Arabia leading the market with 27 potential listings, according to an analysis. In its latest report, professional services network firm EY said the overall MENA region was expected to witness the listing of 38 companies and 22 funds in 2025, across a variety of sectors. Three listings are in the pipeline of the exchanges in the UAE, while Qatar is expected to witness one IPO. This comes as the Gulf Cooperation Council region has emerged as a hotspot for IPOs in recent years, fueled by robust economic reforms, diversification efforts away from oil dependence, and growing interest from both regional and international investors. 'The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike,' said Gregory Hughes, EY MENA IPO and transaction diligence leader. According to the analysis, Panda Retail Co. and Riyad Capital from Saudi Arabia, as well as Etihad Airways and Amanat Holdings from the UAE, are the notable companies considering an IPO in 2025. Outside the GCC region, Egypt has announced five IPOs for 2025, while Algeria has two businesses intending to list. In December, the Egyptian Cabinet announced plans to accelerate the government offerings program procedures in 2025 to maximize the private sector's economic role and attract more investments. The move from the government aligns with the nation's broader effort to expand the number of publicly traded companies and attract greater investment. The EY report set out how ESG goals remain 'a priority' in the Middle East, and this will have an impact on potential IPOs. It cited a new law in the UAE, set to come into force in May, requiring companies to report carbon emissions and adopt decarbonization strategies — including renewable energy and carbon offsetting. It sets penalties for noncompliance and encourages research and development. It also promotes carbon trading through a dedicated registry. 'These measures align with the UAE's 2050 net zero goals and are likely to influence IPO market dynamics, as companies prioritize sustainability to attract investors,' said the report. The expected listings activity in the Gulf is in line with global forecasts, with the IPO market on track for a 'strong performance' in 2025, according to EY. 'This is supported by a cautiously optimistic economic environment, increasingly accommodative monetary policies, heightened liquidity, valuation levels and investor confidence,' the report added. The firm said that while there were challenges — particularly around fiscal and monetary policies, geopolitical tensions, artificial intelligence and digital transformation — they also 'open the door to new opportunities.' EY called on businesses to focus on adapting their strategies to align with shifting market demands and 'leveraging IPOs as a platform to drive growth and innovation.' MENA IPO activity in 2024 EY revealed that markets in the MENA region witnessed a total of 54 IPOs in 2024, representing a 12.5 percent rise compared to 2023. These IPOs raised $12.6 billion in proceeds, also marking a 17.6 percent rise compared to the previous year. The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings that were listed during the last quarter of the year. The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike. Gregory Hughe, EY MENA IPO and transaction diligence leader 'The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market,' said Brad Watson, EY MENA strategy and transactions leader. He added: 'The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity.' Earlier this month, a report released by the Kuwait Financial Center revealed that Saudi Arabia led the GCC IPO market in 2024, raising $4.1 billion through 42 listings, the highest number in the region. According to that analysis, the GCC region saw an increase of 23 percent in IPO proceeds compared to 2023, reaching a total of $13.2 billion across 53 public offerings. The EY report states that the MENA region witnessed 25 IPOs in the fourth quarter of 2024 raising $7.9 billion — a 32 percent increase in number and a 59.4 percent surge in proceeds compared to the same period in 2023. Saudi Arabia dominated the region's IPO activity with 17 of the listings, and the Kingdom also raised $1.2 billion in proceeds during the period. Five IPOs took place on Saudi Arabia's main market during the fourth quarter, raising proceeds worth $1.1 billion. The remaining 12 IPOs happened on the Kingdom's parallel market Nomu, with proceeds valued at $119 million. Arabian Mills for Food Products Co. and United International Holding Co. marked the highest proceeds in Saudi Arabia at $300 million each. 'The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46 percent of the total IPO activity in that year. Nomu listings accounted for 50 percent, indicating robust activity in the junior Saudi market,' said Hughes. According to EY, Talabat Holding plc, which is listed on the Dubai Financial Market, raised the highest proceeds valued at $2 billion, contributing 25.8 percent of the overall number in the fourth quarter. The Abu Dhabi Securities Exchange welcomed two IPOs in the fourth quarter, with proceeds valued at $2 billion. In the ADX, Lulu Retail Holding raised $1.7 billion, followed by ADNH Catering at $235 million. The Bahrain bourse witnessed the Al-Abraaj Restaurants Group IPO that raised $23.9 million. Outside of the GCC region, there were two MENA IPOs in the fourth quarter: Compagnie Marocaine de Goutte a Goutte et de Pompage in Morocco and the United Bank in Egypt.
Gulf Business
11-02-2025
- Business
- Gulf Business
54 IPOs raised $12.6bn in 2024 in MENA region, shows report
Image: Getty Images The Middle East and North Africa (MENA) region saw a notable surge in initial public offerings (IPOs) in 2024, with 54 listings raising a total of $12.6bn, according to the EY MENA IPO Eye Q4 2024 report. This marks a 12.5 per cent increase in the number of IPOs and a 17.6 per cent rise in proceeds compared to the previous year. Q4 Surge: 32 per cent more IPOs, 59 per cent higher proceeds According to the The spike in proceeds was driven by high-value IPOs such as Talabat Holding plc, OQ Exploration & Production, and Lulu Retail Holdings, which listed during the final quarter of the year. Talabat, which went public on the Dubai Financial Market (DFM), raised the largest amount of proceeds in Q4, contributing 25.8 per cent of the total quarterly funds. The second-largest IPO came from OQ Exploration & Production, which raised $2bn in the largest-ever IPO in Oman. Together, these two listings accounted for nearly half of the total Q4 proceeds. Outside the GCC, Morocco's Compagnie Marocaine de goutte a goutte et de pompage (CMGP) and Egypt's United Bank also made their market debuts during Q4. Saudi Arabia leads the pack with 17 listings in Q4 Saudi Arabia continues to dominate the region's IPO activity. In Q4 2024, the kingdom accounted for 17 of the 25 IPOs, raising a total of $1.2bn. Of these, five listings took place on the Tadawul Main Market, collectively raising $1.1bn. The highest proceeds came from Arabian Mills for Food Products Company and United International Holding Company, each raising $300m. In total, IPO activity in Saudi Arabia was driven by a diverse range of sectors, including commercial and professional services (20 per cent), materials (12.5 per cent), food and beverages (10 per cent), and healthcare (10 per cent). UAE's robust performance and ESG focus The UAE saw strong IPO activity as well, with four new listings during Q4 2024. On the Abu Dhabi Securities Exchange (ADX), Lulu Retail Holdings PLC raised $1.7bn and ADNH Catering PLC raised $235m. Additionally, the DFM welcomed Talabat Holding plc, which raised $2bn, continuing the trend of high-value listings in the region. As the UAE moves toward its net-zero 2050 target, the country has also introduced a law requiring businesses to report carbon emissions, starting in May 2025. The law aims to encourage companies to adopt decarbonisation strategies, including renewable energy and carbon offsetting. This emphasis on sustainability is expected to play a key role in shaping IPO market dynamics as companies align with the UAE's environmental goals. Positive outlook for 2025 IPOs in MENA region Looking ahead, the MENA IPO market is poised for continued growth. EY's Gregory Hughes, IPO and transaction diligence leader, noted that Q4 2024 accounted for 46 per cent of the total IPO activity in the region for the year, underscoring the strong momentum. Saudi Arabia's Nomu Parallel Market remains a key driver, accounting for 50 per cent of Q4 listings. In 2025, 38 companies and 22 funds are expected to list across the region's exchanges. Among the GCC countries, Saudi Arabia leads with 27 companies in the pipeline, followed by the UAE with three and Qatar with one. Companies such as The MENA IPO market is expected to remain a key player globally as regional exchanges continue to innovate and attract investors with strong governance and sustainability initiatives. Brad Watson, EY MENA strategy and transactions leader, says: 'The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market. The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. 'In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity. The market is also anticipating the Arena platform from the DFM, which is expected to launch in 2025.' Read:
