Public listings in Mena markets set to rise in 2021, EY says | The National

Public listings in Mena markets set to rise in 2021, EY says | The National

More companies in the Middle East and North Africa are expected to go public in 2021 after the number of listings and money raised dropped last year, according to the consultancy EY.

Renewed optimism for a gradual pick-up in public offerings in regional markets is driven by regulatory changes that support public companies, EY said in a report on listings in the region. The consultancy expects more than 10 initial public offerings (IPOs) in Saudi Arabia this year and accelerated listing plans by private and state-owned companies in Egypt.

"As 2021 begins, we believe that continued fiscal stimulus measures, an abundance of liquidity, and growing confidence in Covid-19 vaccination programmes will sustain positive IPO momentum," Matthew Benson, EY Mena strategy and transactions leader, said.

In 2020, the Mena region recorded nine IPOs that raised $1.86 billion, a 40 per cent drop in total issuances and 94 per cent decline in total proceeds compared to 2019. Six of the nine IPOs were in the real estate sector, with the remainder in healthcare, consumer stables and insurance sectors, according to the report.