MENA IPO activity surged 60% y-o-y in volume terms in 4Q2017, with eight transactions for the quarter (six in the GCC alone), according to EY’s Q4 2017 MENA IPO Eye report picked up by the Saudi Gazette. IPO value amounted to USD 2.5 bn in 4Q2017, over ten times the capital raised last year. The UAE led the MENA IPO market in value, having raised USD 2.2 bn in new listings, primarily from transactions by Emaar Development (USD 1.3 bn) and ADNOC (USD 850.9 mn).

MENA IPO activity to gain momentum in 2018: “We expect MENA IPO activity to gain momentum in 2018 bolstered by economic reforms and privatization drive of countries such as Saudi Arabia and Egypt,” said EY’s MENA IPO Leader Gregory Hughes. “This, coupled with improved oil prices, favorable government initiatives and strong investor appetite, is likely to spur more listings in the MENA, especially from leading regional government-entities. The IPO activity in the region is likely to see a mix of local and international floatings. In addition, family-owned, owner managed and private equity-backed businesses are also signaling their intention to go to the market during 2018; this again could include a combination of local and international offerings of different sizes.”