The Middle East and North Africa (MENA) region saw a 500 percent year on year increase, according to a new report by global company Ernst & Young.
Total proceeds raised for MENA initial public offerings (IPOs) during the first half of 2022 were approximately $14 billion, an increase of 2,952 percent as compared to the same period last year, the report said.
“MENA IPO activity continues to defy global trends and remains a bright spot in a challenging market. The number and value of deals in the second quarter of this year confirms that investors still have an appetite for growth, yield and diversification, explained EY MENA’s strategy and transactions leader Brad Watson.
Watson added several MENA listings from various sectors were oversubscribed, “which is encouraging for companies looking to list during the second half of this year.”
As per the second quarter report, nine MENA IPOs raised about $9 billion in proceeds, showing a 133 percent increase despite a 40 percent decline in number of IPOs.
The report said that Dubai Electricity and Water Authority PJSC (DEWA) raised over $6 billion, becoming the biggest IPO in EMEA region since 2019 and the largest IPO to date in the UAE. The order book was oversubscribed by 37 times.
Borouge plc, the second-largest IPO during the first half of this year, raised $2 billion with an aggregate oversubscription of 42 times.
TECOM Group raised $454 million and saw an oversubscription of 21 times.
The report added ADC Acquisition Corp PJSC became the first special purpose acquisition company (SPAC) to ever be listed in MENA, raising $99.9 million and was listed on the Abu Dhabi securities exchange (ADX).
In Saudi Arabia, the Saudi Home Loans Company raised $160 million with the book building being oversubscribed 50 times, and listed on the Tadawul during the second quarter of this year, the report said, showing a significant lead in IPO volumes.
The report also stated that real estate company Retal Urban Development Company raised $384 million with its institutional order book being subscribed 62 times over.
Despite a global slowdown in the IPO market, the Middle East along with India, were recipients of a strong quarter.
The report also showed six direct listings reported in the second quarter of 2022, with 12 listings announced during the first half of the year.
Three IPOs on the NomuParallel Market during the second quarter raised $40.8m in total, the data showed.
The IPOs were by Arabian Food and Dairy Factories Company, Ladun Investment Company and Amwj International Company.
Kuwait’s Ali Alghanim and Sons Automotive Company raised a fresh capital of $323 million through a private placement before listing on Boursa Kuwait, the report said.
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