MENA Markets Witness 14 IPOs in Q1-2025

The Middle East and North Africa (MENA) markets saw 14 Initial Public Offerings (IPOs), all in the GCC region, during Q1 2025, compared with 10 IPOs in the same period in 2024 raising $2.4 billion in proceeds, marking a 106% increase compared with the prior year.

In its MENA IPO EYE Report for the quarter, global accounting firm Ernst & Young said that Saudi Arabian company 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 Q1 2025, Saudi Arabia led the region in IPO activity, accounting for 12 out of 14 listings. During this period, five IPOs took place on the Tadawul Main Market, generating total proceeds of $1.8 billion while the remaining seven IPOs listed on the Nomu Parallel Market totalled $69 million.

Giving the details, the report said highest proceeds were achieved by Umm Al Qura for Development & Construction at $523 million, followed by Almoosa Health at $450 million and Derayah Financial at $400 million, all listed on the Tadawul Main Market.

The IPO funds raised in Saudi Arabia during Q1 2025 came from diverse sectors, with the largest contributions from real estate management (28%), health care equipment and services (24%), financial services (21%), and consumer discretionary distribution and retail (17%).

The remaining two IPOs during the quarter were one each from the UAE and Oman respectively.

The Abu Dhabi Securities Exchange (ADX) had one listing: Alpha Data PJSC, which raised $163 million (software and IT services sector), while Oman’s Muscat Stock Exchange (MSX) saw one IPO, with Asyad Shipping Co SAOG raising US$333m.

Four out of the 14 IPOs offered a free float of more than 30% of the company’s share capital. First-day returns varied, with 11 out of 14 listings for Q1 of 2025 registering a gain compared with the offer price.

The share price performance of six companies (two of which were listed on the Nomu Parallel Market and the remaining four on the Tadawul Main Market), including Umm Al Qura for Development & Construction, Arabian Company for Agricultural and Industrial Investments and Derayah Financial, had the highest first day gain of approximately 30%.

This 30% is the limit-up level set by the regulator for daily stock movement and represents the allowable ceiling.

Gregory Hughes, EY-Parthenon MENA IPO Leader, said that 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 MENA region is reflective of 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,” he added.

Outlook for 2025

The report said that the outlook for MENA IPOs in the rest of 2025 remains positive, with 21 companies intending to list on MENA exchanges across various sectors.

Among the GCC countries, the KSA remains the leader, with 17 companies having received approval from the Capital Market Authority (CMA).

In the UAE, three companies have announced their plans to IPO and outside the GCC, Egypt has announced one IPO.

The report noted that the Environmental, Social, and Governance (ESG) executives in the region were encountering challenges from a fragmented regulatory environment.

The UAE has adopted guidelines for climate risk disclosures, while Oman requires ESG disclosures on carbon emissions and diversity. Compliance is complex and evolving and to foster sustainable growth, organisations must integrate ESG into corporate strategies, the report added.