The Middle East and North Africa's capital markets recorded 10 initial public offerings in Q4 2025, raising total proceeds of $1.7 billion, according to EY.
This surge was led by regional heavyweight Saudi Arabia that remained the most active market with six IPOs netting $561.6 million for the three-month period, stated the company in its MENA IPO Eye Q4 2025 report.
First day share price performance for Q4 2025 varied, with most of the listings in the Kingdom of Saudi Arabia (KSA) remaining static or declining at the end of the first trading day with the remaining listings performing more positively.
Trading performance has also been challenging for several IPOs in the region, with some planned listings postponed or pulled amid weaker demand and more selective investor sentiment.
Brad Watson, EY-Parthenon Mena Leader, said: "IPO activity during the final quarter of 2025 highlights the continued maturation of MENA capital markets. Issuers and investors remained focused on quality, fundamentals and execution, reflecting an increasingly sophisticated market environment. The depth of capital available and the diversity of listings underscore the region’s growing role as a destination for public market activity."
KSA continues to spearhead listing activity
In the fourth quarter of 2025, KSA remained the most active market with six IPOs that together raised $561.6 million. Cherry Trading Company, Al Masar Al Shamil Education Company, Consolidated Gruenenfelder Saady Holding Co. and Alramz Real Estate Company listed on the Tadawul Main Market with the combined proceeds of $546.7 million. The remaining two listings occurred on the Nomu – Parallel Market, raising $14.8 million in total.
Kuwait, Morocco and the United Arab Emirates (UAE) accounted for the rest of the IPO activity during the quarter.
During Q4 2025, Société Générale des Travaux du Maroc (SGTM) led the region in terms of proceeds, raising $525.4 million on the Casablanca Stock Exchange, which represented 30.4% of the total proceeds. No direct listings were recorded in the Mena region during the quarter.
IPOs during the period spanned a range of sectors, including real estate, construction, energy, retail, transportation and industrials, reflecting continued progress in broadening the region’s capital markets and strengthening economic diversification.
IPO pipeline remains active heading into 2026
Across 2025, the Mena region saw 49 IPOs, raising $7.3 billion in total proceeds. When compared year-on-year with 2024, the total number of IPOs decreased by 9.3% from the 54 listed with total proceeds declining by 41.8% from the $12.6 billion raised.
The majority of listings in 2025 were from KSA, which accounted for 39 IPOs, raising a total of US$4.9 billion.
Though both investors and companies maintained their disciplined approach, the year was characterized by steady issuance activity, underpinned by ongoing economic diversification, regulatory development, and growing capital market depth across the region.
Gregory Hughes, EY-Parthenon MENA IPO Leader, said: "The continued expansion of regulatory frameworks and governance standards across the region is supporting market confidence and accessibility. These developments are strengthening capital market infrastructure and sustaining interest from companies preparing to list."
Regulatory developments back capital market growth
Regulatory initiatives across the region continue to enhance market transparency, governance and access to capital. These efforts are contributing to deeper, more resilient capital markets and are expected to support sustained IPO activity as regional exchanges evolve.
The outlook for MENA IPOs remains positive, with 18 companies and funds signaling their intention to list across the region’s exchanges in early 2026. Expected listings include sectors such as logistics, utilities, technology, manufacturing and industrials, reflecting strong momentum across diversified areas of the economy.-TradeArabia News Service
