Saudi Arabia leads Mena IPO market

Dubai: In the first quarter of 2019, Saudi Arabia led the Mena IPO market raising a cumulative value of $58.3 million in capital, contributed by the listing of Saudi software and services company, Al Moammar Information Systems Company (Saudi SE) on Tadawul, according to the latest EY Mena IPO Eye report.

In Q1, Saudi Arabia’s Tadawul witnessed the start of the initial phase of inclusion on two major international indices in March 2019: the FTSE Russell and S&P Dow Jones’ Emerging Markets indices.

Furthermore, the structural changes to Nomu announced by the Tadawul to support the number of SME listed companies will be executed in two phases in 2019. The first phase includes provisions to allow direct listings on Nomu without an IPO. The second phase will focus on the listing of close-ended funds (CEFs) and real estate investment trusts (REITs) on Nomu.

Phil Gandier, Mena Transactions Leader, EY, says: “All of these developments underline the fact that KSA has been implementing a number of regulatory enhancements in its equity markets that are effectively improving market access for investors. The Kingdom’s inclusion in these indices is likely to further accelerate buying activity from foreigners in the country. These developments are aligned with the objectives of the financial sector development programme envisaged by Saudi Vision 2030 and will support IPO activity in the wider region.”

Mena IPO performance in Q1 2019 While market fluctuations in the Mena region and volatility in global equity markets have caused investors to be cautious, the pipeline for IPO activity in region is strong along with positive opportunities ahead.

Business Bureau, Gulf Today