The Middle East and North Africa (MENA) region saw 21 IPOs raise proceeds of $7.9 billion in 2021, an increase of 133 per cent in total issuances and 325 per cent in total proceeds when compared to 2020, EY said in its latest report.
The year’s biggest IPOs in value in MENA were in the utilities, energy and financial services sectors, with Saudi Arabia’s International Company for Water and Power Projects (ACWA Power Company) leading with proceeds of $1,211.4 million on the Tadawul. The Tadawul main market saw five IPOs in Q4 alone, with a further two on the Nomu-Parallel Market. The region’s second largest IPO in value in 2021 was in the energy sector, with the ADNOC Drilling Company securing proceeds of $1.1 billion in Q4 on the Abu Dhabi Securities Exchange (ADX).
Major market activity returned to the MENA region, with thirteen issuances raising $5.6 billion in proceeds for the year. Globally, 2021 was the most active year for the IPO market for over 20 years, with a total of 2,388 deals raising $453.3 billion in proceeds – a 64-per cent and 67 per cent respective increase Y-O-Y. Europe, the Middle East and Africa exchanges produced the highest growth seeing a 158-per cent increase in the number of IPOs (724) and a 214-per cent increase by proceeds ($109.4bn).
In the Sultanate of Oman, two IPOs raised a total of $20m during 2021 – as compared to one IPO in 2020, which raised $53 million. In Bahrain, the Bahrain Bourse and ADX signed a strategic partnership agreement aimed at implementing a cross-border plan in trading and post-trading environments.
Brad Watson, EY MENA Strategy and Transactions Leader, says: “MENA IPOs had a record year in 2021, with an unprecedented surge in issuances, which was driven by a combination of supportive regional regulatory actions as well as a shift in investor sentiment back towards MENA markets. IPO activity was particularly encouraging during the fourth quarter when Saudi Arabia’s ACWA POWER became the region’s largest IPO in the year, followed closely by the listing of ADNOC Drilling Company.”
MENA equity markets had a stellar performance during 2021, with the observed markets all generating double-digit returns. The top performer for 2021 in the MENA equity markets was Abu Dhabi, with a return of 68 per cent, followed by the Tadawul, with its index up by 30 per cent for the year. The Dubai Financial Market was up by 28 per cent, followed by the Boursa Kuwait Premier Market Index, which grew by 26.2 per cent. The Bahrain All Share Index increased by 21 per cent, while in the Sultanate of Oman, the MSX 30 Index returned 13 per cent. The index performance in Qatar reached 11 per cent, and in Egypt, the EGX 30 Index was up by 10 per cent.
