06-05-2025
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.
