Market Insights Financial Corporate Finance

Initial Public Offerings - MENA

MENA

The transaction value in the Initial Public Offerings market is projected to reach US$12.26bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -7.34% resulting in a projected total amount of US$11.36bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$97.62m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$63,330.00m in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Initial Public Offerings market in MENA has been experiencing a notable surge in activity recently.

Customer preferences: Investors in the MENA region have shown a growing interest in IPOs, seeking opportunities for high returns on investment. With a youthful population and increasing disposable income, there is a strong appetite for investing in promising companies that are going public.

Trends in the market: In Saudi Arabia, the largest economy in the region, there has been a significant increase in IPO activity. The government's Vision 2030 initiative, aimed at diversifying the economy away from oil dependency, has led to the privatization of state-owned entities and the listing of major companies on the stock exchange. This trend has attracted both local and foreign investors looking to capitalize on the expanding market.

Local special circumstances: The regulatory environment in the MENA region has been evolving to accommodate the growing interest in IPOs. Stock exchanges are implementing reforms to enhance transparency and investor protection, which is boosting confidence in the market. Additionally, the presence of sovereign wealth funds in some countries provides stability and long-term investment opportunities for IPOs.

Underlying macroeconomic factors: The MENA region's economic growth, driven by sectors such as technology, healthcare, and renewable energy, has created a favorable environment for companies considering going public. With favorable demographics and increasing urbanization, there is a growing consumer market that is attracting companies to seek capital through IPOs. Furthermore, the region's strategic location as a gateway between East and West positions it as an attractive investment destination for companies looking to expand globally.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.