From a surge in IPO activity to growing appetite for mergers and acquisitions, both local and international investors are turning their attention to new opportunities in the Saudi and wider MENA markets
As Saudi Arabia continues to accelerate its Vision 2030 transformation, the Kingdom's capital markets have emerged as one of the most dynamic in the region. From a surge in IPO activity to growing appetite for mergers and acquisitions, both local and international investors are turning their attention to new opportunities in the Saudi and wider MENA markets.
On the sidelines of EFG Hermes' 11th London Investor Conference, currently taking place at the Emirates Stadium from September 8-11 under the theme "Investing Right in MENA," Saud Al Tassan, CEO of EFG Hermes KSA, shares his perspective on where investor interest is headed, how the firm is positioning itself amid a wave of IPOs, and what global economic shifts mean for MENA's capital markets in 2025.
We are witnessing broad-based interest, with IPOs standing out as a particularly strong product attracting demand both locally and internationally. The momentum remains strong and continues to build. There are no specific compelling sectors; interest is growing across various sectors.
At EFG Hermes, we have been onboarding companies across a wide range of sectors. Currently, we are in the process of finalizing a fashion retail deal, which has generated strong interest from investors.
From our perspective, it all comes down to the quality of opportunities, and within the region, we continue to see no signs of slowdown.
Investor appetite has been very strong and continues to grow, driven by the government's Vision 2030 initiatives. The progress we are seeing is clearly reflected in market interest and in the deals we are executing -- not only in capital markets but also in M&A.
Companies in the region are evolving, attracting significant interest from regional and international players, particularly in acquisitions -- a trend that was far less common in the past.
This growing appetite underscores the positive impact of the government's actions in Saudi Arabia
At EFG Hermes, we have built a strong position to capture IPO opportunities. If we look at the number of IPOs that we brought to the market just four years ago, compared to the number that we are seeing now, there has been a remarkable growth.
The growth we are seeing today is not only in the number of IPOs, but also in the roles we play. Four years ago, our involvement was largely limited to joint bookrunner roles. Today, we are leading as financial advisors on most IPOs.
What EFG Hermes brings to the table is very unique. It is something the market needs. This has enabled us to secure a niche in many of the most prominent IPOs over the past two years, and the momentum continues.
Our current pipeline is the strongest it has ever been. We hope that capital markets will continue to attract interest, provided there are no global or economic slowdowns. Investors are taking a long-term view, and they clearly recognize the potential in these opportunities
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With globalization, shifts in interest rates and inflation affect markets everywhere, and investors are watching these developments closely -- not only in our region but worldwide. So far, we have not seen any slowdown.
In fact, in the Jamjoum IPO that we are currently working on, the interest has been strong, and we have already closed the book on the first day of opening.
While such factors can influence capital markets, the IPO segment we focus on has remained resilient, showing little impact. At the same time, the M&A market is experiencing significant growth. This positions us strongly to navigate challenges and continue adding value, regardless of broader market conditions.