Saudi Arabia launches Nationwide Academy of Automobiles and Vehicles

RIYADH: Saudi Arabia led the Center East and North Africa preliminary public choices, with 14 out of 19 listings occurring within the fourth quarter of 2023.  

The MENA area witnessed a complete of 48 IPOs throughout 2023, amassing $10.7 billion in proceeds, as detailed within the EY MENA IPO Eye This fall 2023 report.  

Notably, 5 listings, primarily throughout the vitality and logistics sectors, accounted for 58 % of the entire MENA IPO proceeds raised all year long. 

Within the last quarter of 2023 alone, the area noticed 19 IPOs elevating $4.9 billion in proceeds. Saudi Arabia’s management in IPO exercise was significantly evident in the course of the quarter, with ADES Holding Co. and SAL Saudi Logistics Companies Co. main the cost on the Tadawul Primary Market with proceeds of $1.2 billion and $700 million, respectively.   

The Kingdom’s remaining 12 IPOs, which collectively raised $140 million, have been performed on the parallel market, Nomu, together with the quarter’s solely direct itemizing within the MENA area by Almujtama Alraida Medical Co. 

Saudi Arabia’s ADES Holding Co. led the quarter by elevating essentially the most funds, contributing 25 % to the general MENA area’s IPO proceeds, adopted carefully by UAE’s Pure Well being Holding PJSC, which accounted for 20 %. 

The quarter’s listings have been predominantly within the Gulf Cooperation Council area, with Egypt being the one non-GCC nation to report IPO exercise over the yr. 

Furthermore, the variety of Saudi Arabia’s IPO market in 2023 spanned a number of sectors, with vitality, transportation, and healthcare main the way in which.  

The primary quarter of 2024 has already witnessed important exercise with two Saudi listings on Tadawul in January, MBC Group and Avalon Pharma, elevating $222 million and $437 million, respectively, signaling a promising begin to the yr within the Kingdom’s capital markets, in accordance with the report.

“The 2024 pipeline contains 29 firms throughout varied sectors saying their intention to checklist, with the Kingdom of Saudi Arabia and the UAE main the way in which by way of anticipated volumes. Outdoors the GCC, Egypt has 4 IPOs deliberate,” the report acknowledged.  

Investor confidence remained sturdy within the area, with 11 of the 19 IPOs in This fall 2023 experiencing a first-day acquire in share worth.  

By the yr’s finish, 26 out of the 48 IPOs launched in 2023 demonstrated a optimistic return relative to their itemizing worth, with Saudi Arabia’s Armah Sports activities Co. securing the very best acquire at 72 %. 

Final yr noticed a slight decline in IPO exercise in comparison with 2022, with a 6 % lower within the variety of IPOs and a 51 % discount in proceeds.  

This drop might be attributed to the excessive quantity of IPOs in 2022, together with important listings resembling Americana Eating places Worldwide PLC, Saudi Aramco Base Oil Co., and Arabian Drilling Co.