Talabat, OQ Top in Raising IPO Proceeds in Q4-2024

Talabat Holding plc, the leading on-demand online food ordering, delivery, takeaway, groceries and convenience retail marketplace, which was listed on Dubai Financial Market (DFM), and Oman’s global integrated energy firm OQ Exploration & Production listed on Muscat Securities Market, have raised more than 50% of the proceeds through the initial public offerings (IPOs) during Q4 of 2024 in the MENA region.

While Talabat raised 25.8% of the proceeds totalling $7.9 billion during the quarter, OQ Exploration & Production grabbed 25.3% of the proceeds, according to a report entitled “MENA IPO Market 2024” from global consulting firm EY.

The report said that the MENA markets saw 25 IPOs during the quarter and the number of IPOs increased compared with Q4 of 2023 (six IPOs) and there was a significant increase in proceeds of 59.4%.

There were a total of 54 IPOs, a 12.5% increase y-o-y in the MENA region in 2024, raising $12.6 billion, a 17.6% increase y-o-y, the report said.

The Saudi Arabia dominated the region’s IPO activity in terms of the number of listings (17 out of 25) in Q4 of 2024, with total proceeds of $1.2 billion. The highest proceeds were from Arabian Mills For Food Products Co, raising $300 million followed by United International Holding Company, also raising $300 million, both of which were listed on the Tadawul Main Market.

In Q4 of 2024, five IPOs took place on the Tadawul Main Market with total proceeds of $1.1 billion, and the remaining 12 IPOs were listed on the Nomu market with total proceeds of $119 million, the report said.

Abu Dhabi Securities Exchange (ADX) had two listings: Lulu Retail Holdings PLC, which raised $1.7 billion, and ADNH Catering PLC, which raised $235 million, totalling $2 billion combined proceeds. The ADX also saw a direct listing of Mair Group last year.

Additionally, the DFM had one new listing, Talabat Holding plc in the consumer and technology sector, raising $2 billion.

In Q4 2024, Oman’s MSX saw one IPO, which was the largest IPO in Oman to date, with OQ Exploration & Production raising $2 billion.

The Bahrain Bourse saw the listing of AlAbraaj Restaurants Group’s IPO raising $23.9 million and in the wider-GCC region, there were two IPOs – Compagnie Marocaine De Goutte A Goutte Et De Pompage in Morocco and The United Bank in Egypt.

Outlook for 2025

Despite the ongoing challenging geopolitical environment in the MENA region, the outlook for MENA IPOs in 2025 remains positive, with 38 companies and 22 funds intending to list on MENA exchanges across a variety of sectors.

Among the GCC countries, the Saudi Arabia remains the leader, with 27 companies, followed by three in the UAE and one in Qatar. Additionally, outside the GCC, Egypt has announced five IPOs, and Algeria has announced two.

Notable companies such as Etihad Airways PJSC and Amanat Holdings (education platform) from UAE, Panda Retail Company and Riyad Capital from the Saudi Arabia, are among those considering IPOs in 2025, the report added.