Explore the recent IPO trends in the MENA region and the opportunities they present for family offices, SMEs, and startups. Learn about the changes in the Saudi Arabian market and the increased participation of international institutional investors. Discover the difference between dual and concurrent listings and the success of the Americana IPO. Discuss the factors contributing to the rise in IPOs in the MENA region, including government support and domestic market strength.
Foreign investment in Saudi Arabia is on the rise, with about 20% of the institutional book going to international investors, highlighting the region's appeal to global capital.
Concurrent listings, such as the example of Americana, have piqued interest from companies worldwide and showcased the readiness of regional exchanges to provide more liquidity and access to international markets.
Deep dives
IPO Trends in Gulf Countries
The podcast episode discusses the dominance of Gulf countries in the global IPO landscape of 2022. Speakers from Qatar Stock Exchange, Saudi Exchange, Abu Dhabi Securities Exchange, Dubai Financial Market, and HSBC provide insights into recent IPO trends in the region. They highlight the increase in foreign investment in Saudi Arabia, with about 20% of the institutional book going to international investors. The Saudi Exchange aims to further institutionalize the market and increase the proportion of institutional investors. Dubai focuses on IPOs, liquidity, and regulatory reforms, aiming to create efficient and practical processes for SMEs to access the public markets. Qatar Stock Exchange plans to boost liquidity and encourage primary markets, with a focus on mid-sized transactions and family-type businesses.
Dual and Concurrent Listings
The discussion covers concurrent listings, first of its kind in the region, where the bell rings at the same time in both the ADX and data-dowel exchanges. The concurrent listing of Americana serves as a positive example that attracts inquiries from companies around the world interested in similar transactions. The ADX aims to provide more liquidity and access to international markets for regional companies. The podcast also explores the importance of diversification in the markets, which has generated interest from portfolio managers and boosted liquidity in the region. Various factors, such as government support, reforms, conflicts in other markets, and upcoming events like World Cup and Expo 2020, have contributed to the surge in IPOs and investment opportunities in the region.
Abu Dhabi IPO Fund and Support for Companies
Another topic covered is the Abu Dhabi IPO Fund, a $5 billion fund aimed at supporting companies in Abu Dhabi and those setting up bases in the region. The fund participates in public offerings, up to 40% of the free float, following a strict selection process in coordination with ADX and regulatory requirements. The IPO fund works in conjunction with the Abu Dhabi Investment Office, ADGM, and other entities to attract and list companies on the ADX. The overall goal is to bring more companies to Abu Dhabi and eventually list them on the exchange.
In 2022, the Initial Public Offering (IPO) landscape was dominated by countries in the MENA region, with the GCC raising about a quarter of all IPO funds raised worldwide during this time. What has been driving this growth and will it continue? What differentiates the region when it come to the IPO process?
Listen as Fawzi Sabbagh, Director, Head of Equity Sales, MENA, HSBC together with experts in the MENA region, Colin Milton, Listing Specialist, Qatar Stock Exchange, Nayef Al Athel, Chief of Listing, Saudi Exchange, Soheib Ghizali, Manager, Business & Market Development, Abu Dhabi Securities Exchange (ADX) and Tahir Mahmood, Head of Business Development, Dubai Financial Market (DFM) and Nasdaq Dubai, share their expertise on this topic.