BrazilMENA hosted IPOs worth $2.4 billion in first quarter of 2025
The global and MENA IPO market have had a decent start to the year, despite profound uncertainty and significant market disruptions. That is according to the IPO EYE from consulting firm EY.
In the first three months of 2025, the global IPO market showed resilience, posting year-over-year gains in volume and value. A total of 291 IPOs raised $29.3 billion globally, maintaining steady volume compared with Q1 2024 while increasing total deal value by 20%. The US exceled in IPO activity, Asia-Pacific markets showed signs of recovery and Europe held steady.
“Entering 2025, a flurry of emerging dynamics is heightening volatility and uncertainty across the IPO landscape,” said George Chan, Global IPO Leader at EY. “Despite the uncertainties, the global IPO market performed robust, with AI becoming a central part of the company narratives for many IPO candidates.”
The IPO market in the Middle East and North Africa (MENA) had a good start with 14 IPOs raising total proceeds of $2.4 billion. The number of IPOs rose from 10 in Q1 2024, with proceeds increasing by 106% compared to the same period in the previous year.
Umm Al Qura for Development & Construction led the quarter with the highest proceeds, accounting for 22% of total IPO proceeds in MENA, followed by Almoosa Health at 19%. Both companies are listed on the Tadawul Main Market.
Saudi Arabia led the region in IPO activity, hosting 12 out of 14 listings. Five IPOs on the Tadawul Main Market raised a total of $1.8 billion, while seven IPOs on the Nomu parallel market generated $69 million. The highest proceeds were from Umm Al Qura for Development & Construction at $523 million, followed by Almoosa Health at $450 million and Derayah Financial at $400 million.
The IPO funds raised in the Kingdom during the period came from various sectors, with the largest contributions from real estate management (28%), healthcare equipment and services (24%), financial services (21%), and consumer discretionary distribution and retail (17%).
The Abu Dhabi Securities Exchange (ADX) had one listing in Q1 2025 from software and IT services sector Alpha Data PJSC, which raised $163 million. Oman’s Muscat Stock Exchange (MSX) saw one IPO, with Asyad Shipping Co SAOG raising $333 million.
Outlook
Looking ahead, Chan said that the convergence of several factors will likely see many companies reassess their plans to go public. “Caught in the vortex of uncertainty, some companies initially planning to list in 2025, particularly those targeting the first quarter of the year, have delayed their IPOs to later quarters or even early 2026.”
“Though IPOs held firm this quarter, heightened volatility readings and a shaky outlook now signal faltering investor sentiment for near-term future listings.”
The MENA region is expected to buck the trend. “The outlook for the rest of 2025 remains positive, with 21 companies intending to list on MENA exchanges across various sectors,” noted EY.
