MENA has witnessed a significant surge in IPO activity, with 2022 and 2023 marking the peak, each hosting approximately 50 IPOs. However, a closer examination of the 2024 figures reveals a shift: the growing prominence of digital-first companies in the IPO landscape.
Explore this edition to discover the key trends shaping MENA IPOs:
- Rise of Digital-First Companies: This trend underscores the region’s accelerating digital transformation and the readiness of tech-driven enterprises for public markets.
- Tech IPOs in 2025: We anticipate that more than 10 will go public in 2025, positioning the year as a breakthrough moment for tech IPOs in MENA.
- Sectors to Watch: Online Retail, Fintech, FoodTech, and Classifieds are expected to be the most active verticals.
The share of digital1 companies has shot up – a trend which we expect to continue
In 2024, digital-first companies accounted for an impressive 32% of IPO proceeds in MENA, buoyed by an increase in deal volume and the landmark listing of Talabat. This trend underscores the region’s accelerating digital transformation, as investor confidence in tech-driven enterprises continues to grow. The shift also signals a maturation of the ecosystem, where scalable digital business models are proving their viability for public markets. With increased backing from institutional investors and regulatory support, digital-first firms are now better positioned than ever to capitalize on IPO opportunities.
Tech to see increased deal activity in 2025 with 10 IPOs expected – an all-time high
Our IPO Readiness Index, which evaluates the preparedness of companies in the region for their public market debut, currently identifies over 25 digital-first companies on the road to IPO. Of these, we anticipate that more than 10 will go public in 2025, positioning the year as a breakthrough moment for tech IPOs in MENA. Nice One’s IPO in January has already put a start to this trend, and we expect more to follow suite.
Online Retail, Fintech, FoodTech, and Classifieds are top sectors to watch out for
FinTech, FoodTech, Classifieds, and Online Retail remain at the forefront of MENA’s evolving digital economy. Key players shaping these sectors include fintech disruptors such as Tamara, Tabby, Mnt Halan, and Huspy, alongside super apps like Noon and Careem, which are driving multi-vertical growth and consumer adoption.
Beyond IPOs, we foresee a surge in M&A activity across the region in 2025. In sectors like FoodTech in KSA, where 10+ sizable players are competing for a slice of the pie, and FinTech in Egypt, with numerous small players offering similar value propositions, consolidation is inevitable. This wave of M&A will not only reshape these industries but also catalyze future IPOs as companies achieve greater scale and market strength.
We hope you found these insights useful. We track the MENA IPO market actively. Please feel free to reach out to us for a more detailed discussion.
