Bloomberg: IPOX® Associate Muehlbauer Highlights MENA IPO Performance

Bloomberg reports that smaller companies in Saudi Arabia are venturing into the subdued equity market with IPOs, facing challenges from selective investors who demand disciplined valuations. At least four firms, including Cherry Trading Co. aiming to raise $67 million and Almasar Alshamil Education Co. targeting $160 million, are preparing listings amid a cautious environment. The article notes that Middle East IPOs have raised over $5.1 billion this year, but many new listings are trading below their offer prices, with the Saudi benchmark index down 7%. Regulatory delays on foreign ownership rules and a slowdown in state-led deals further temper optimism.

IPOX® Research Associate Lukas Muehlbauer provided analysis on the regional trends, stating:

Newly listed stocks across the Middle East and North Africa have declined this year, while other regions have posted solid returns... In this cautious market, global asset managers expect more disciplined pricing.

Muehlbauer's commentary underscores the shift toward fundamentals-driven investments, contrasting MENA's underperformance with stronger returns elsewhere and signaling a need for realistic pricing to attract global capital.

Read the full article by Laura Gardner Cuesta and Eman Abouhassira on Bloomberg: Saudi Small Caps Set to Test IPO Market Amid Valuation Scrutiny