A report by the international company “Ernst & Young” on the activity of public offerings in the Middle East and North Africa region in the second quarter of 2023 confirmed that the UAE and Saudi Arabia continue to lead market activity in the Middle East and Africa region in terms of the number and value of public offerings, noting that the subscription of “ADNOC Supply Services »has the world’s largest order volume for a single deal so far in 2023.
He added that the Middle East and North Africa region enjoys strong economies supported by a low level of debt, to remain an attractive environment for more listings, indicating that the IPO market in the Middle East and North Africa region in the first half of this year witnessed 23 subscriptions, all in the GCC countries. , with total revenues of $5.2 billion.
In detail, the latest report from the international company “Ernst & Young” on IPO activity in the Middle East and North Africa region indicated that the activity of IPO deals in the second quarter maintained its momentum, with revenues of $1.8 billion collected from 13 IPOs, an increase of 44%. % in the number of deals, and an 80% decrease in their value, compared to the second quarter of 2022.
The growth in the number of deals in the second quarter was particularly driven by the activity of the UAE and Saudi markets at a time when Saudi Arabia topped the IPO activity in the region in terms of the number of deals in the second quarter of the year.
In the UAE, the Abu Dhabi Stock Exchange recorded the largest public offering during the second quarter of the year, as the “ADNOC Supply and Services Company” subscription raised $769.5 million. The subscription witnessed the largest order volume in the world in a single deal so far in 2023, as the subscription was covered 163 times, in the highest coverage rate for a public subscription in the UAE.
Ernst & Young stated that Al Ansari Financial Services Company on the Dubai Financial Market was the first family company in the UAE to be listed, with revenues of $210.4 million.
Brad Watson, head of deals and strategy for the Middle East and North Africa region at Ernst & Young, said: “The second quarter of 2023 did not witness a decline in initial public offerings activity in the Middle East and North Africa region, similar to what is happening in the world, as the UAE continues to Saudi Arabia leads the market activity in the Middle East and Africa region in terms of the number and value of IPOs.
He added: «As one example of this matter, it is enough to know that the inclusion of the second company in the (ADNOC) portfolio in 2023 exceeded all global markets in terms of the volume of demand. The Middle East and North Africa region continues to enjoy strong economies supported by a low level of debt, with the implementation of reforms and deregulation in the region, so that this region remains an attractive environment for more listings.
For his part, Gregory Hughes, Head of IPO Services in the Middle East and North Africa at Ernst & Young, said: “The upcoming IPO activity in the Middle East and North Africa region during the second half of this year and 2024 is still in very good condition, with many announcements. From IPOs in Saudi Arabia, as well as current activity across the region, with further deals slated in the UAE, Oman, Qatar and Kuwait. There are planned subscriptions in various sectors and from a group of family companies, state-backed companies, and private equity holders.
He added, “The Middle East and North Africa region witnessed remarkable performance compared to the global IPO market, which was very modest, and we expect this trend to continue in the future, especially with international companies exploring listings in this region.”
In general, the IPO market in the Middle East and North Africa region recorded a total of 23 IPOs in the first half, all in the GCC, with total proceeds of $5.2 billion.
While the Europe and Africa region is still witnessing a significant contraction in the proceeds of subscriptions, the Middle East and North Africa region is enjoying a promising group of subscriptions during the remainder of the year. Up to this point, 23 Saudi companies have announced their plans to be listed on the Tadawul market in the second half of this year, and two companies in Egypt intend to list their shares for trading, which indicates a strong line for initial public offerings in the remainder of this year.
2023-08-08 22:05:19
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