INITIAL public offerings (IPOs) in the Middle East and North Africa (Mena) region raised $2.5 billion from 14 listings in the second quarter of 2025, according to a report by EY.
The proceeds represent a 4 per cent increase from the first quarter, reflecting sustained investor interest and the resilience of regional markets, the EY Mena IPO Eye report said.
Saudi Arabia dominated the activity, with 13 IPOs that raised a total of $1.9bn. The largest was the airline flynas, which raised 44pc of the region’s total second-quarter proceeds. Other notable listings included Specialised Medical Company, which raised $500 million, and United Carton Industries Company with $160m.
In the UAE, the Dubai Financial Market welcomed Dubai Residential REIT, which raised $584m, marking the region’s largest real estate investment trust by market capitalisation and the first pure-play residential leasing REIT in the GCC.
EY-Parthenon Mena leader Brad Watson noted that the quarter “has reinforced the Mena region’s position as a resilient and dynamic IPO market.” He added that a healthy pipeline of listings for the second half of the year suggests the momentum will continue.
The report indicated a cautious investor sentiment, with 10 of the 14 IPOs closing below their offer price on their debut. The trend points to companies being more strategic about market timing.
The second quarter also saw a notable shift towards secondary listings, which accounted for 64.3pc of all IPOs, up from 35.7pc in the first quarter. This indicates a preference for shareholder exits over new capital raising amid market uncertainty.
Looking ahead, the outlook for the second half of 2025 remains strong, with a pipeline of 14 planned listings. Saudi Arabia is expected to lead with 10 offerings, while upcoming activity from Egypt, Tunisia, and Morocco highlights a broadening market depth.
avinash@gdnmedia.bh
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