Honestly, I like the region’s IPO market this year
Honestly, I like the region’s IPO market this year. Saudi Arabia is still the strongest by a wide margin.
Honestly, I like the region’s IPO market this year.
Saudi Arabia is still the strongest by a wide margin. Dar Al Balad listed in May and closed its first day up 28%, with the offering 66 times oversubscribed, and it was the first listing in the Gulf since the war. Now there is a queue behind it: Ninja is preparing a $1 billion offering, and other companies such as Alkhorayef, Ejada and ArcelorMittal Tubular are getting ready.
Egypt is also coming back, one step at a time. Korra Energi closed its first day up 19.5%, the second IPO on the Egyptian Exchange this year. Banque du Caire is on its way, with real interest from investors in London, New York and the Gulf.
The UAE is still in wait-and-see mode. EGA, which was supposed to list for $10 to $15 billion, has been postponed to next year, and the focus has now shifted to the second half of the year...
What caught my attention most is that Morocco came out from under the radar and became the most successful exits market in the region: its stock exchange has reached more than $106 billion in market cap, and CashPlus was 65 times oversubscribed.
The key point is that local liquidity is what is protecting the market now, not foreign capital. Strong companies prefer to list close to home rather than go through New York or London, especially after the Swvl experience.
The region really does still have real opportunities, but selectivity has become the name of the game.
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Eighteen years in investment management, M&A and financial technology. A CFA Charterholder, he leads investment analysis, valuation and fund structuring across Significa's advisory and investment practices, and teaches valuation and fund structures in the CVC Builder curriculum. Concurrently Chief M&A and Growth Officer at AlternativeSoft in London; co-founder of MarkeScope, which developed the first stock-screening solution to incorporate risk measures. Treasurer of CFA Society Egypt; BSc Electrical, Electronics and Communications Engineering, Cairo University.