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Opening up a world of opportunity for our clients’ IPO ambitions in the Middle East

Despite the uncertainty which has been plaguing financial markets throughout the year, investor confidence in the MENAT region remains positive.

From the start of 2022, capital markets experienced a significant decline in the number of IPOs globally, triggered by a variety of macroeconomic factors such as the heightened volatility caused by geopolitical tensions, amongst others.

However, building on momentum from a record year in 2021, the Middle East region stood out, with a flurry of major IPOs. The first quarter of 2022 alone saw 15 MENA IPOs raise USD4 billion1. According to EY data, in the first nine months of 2022, the region witnessed a 550% increase in IPO volume compared to the same period in 20212.

HSBC led a number of transactions in the region, across multiple sectors. The close collaboration between our global product and sector teams allowed us to deliver comprehensive solutions and swift execution to clients. This enabled us to reaffirm position as a leading Equity Capital Markets (ECM) house in the MENAT region, where we are ranked #1 (2022, year to date).

“With strong GDP growth on the back of high energy prices and government initiatives to boost economic and financial diversification, the Middle East market represents an exciting opportunity for domestic and international investors. This was clearly reflected in the deals we have led where we observed unprecedented subscription levels from both regional and international investors, with many international investors new to the region.” says Ed Sankey, Global Head of Equity Capital Markets, HSBC.'

Reflecting on 2022, it has been particularly interesting to witness Saudi Arabia making a significant stride on the regional IPO activity, with a great variety of opportunities across multiple industry sectors. This aligns well with their “Vision 2030”, the governmental program aiming at developing a diverse non-oil economy, says Mohammed Fannouch, Head of Investment Banking & Advisory at HSBC Saudi Arabia.

In the UAE, where HSBC has led a number of IPOs in 2021 and 2022, we are seeing an equally interesting market momentum, with a trend of privatisations driving a surge in IPOs. International banks like HSBC with in-depth expertise of the market’s intricacies can play a strategic part with advisory roles combined with holistic services, says Samer Deghaili, Co-Head, Capital Financing & Investment Banking Coverage, MENAT at HSBC.

Table showing IPO deals in the Middle East 2022

“Throughout 2022, HSBC has demonstrated our expertise in executing large scale transactions in a global coordinator capacity leading 8 transactions in the GCC region and raising USD 14 billion equity for our clients. Standout transactions where we acted as global co-ordinator included the largest IPO in Dubai (DEWA), in Abu Dhabi (Borouge) and in Saudi Arabia (Al Nahdi), with those three IPOs alone raising in excess of USD 9 billion.” says Chris Laing, Managing Director, Head of Emerging Markets Equity Capital Markets at HSBC.

“The breadth of deals across multiple sectors reflects the strength of our local as well as global ECM and sector teams in leading the deal execution and market engagement for our clients. Our global distribution platform also means we have been able to facilitate the international investor community which is now highly active in the region's ECM flow. HSBC's position as number one bank for EMEA IPOs means we have insight into global investor views and participation which is second to none in this time zone.” says Andrew Robinson, Managing Director, Head of EMEA Equity Capital Markets at HSBC.

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Our clients’ IPO ambitions in the Middle East

Future-proofing MENAT market infrastructure

The MENAT region remains a highly dynamic collection of markets, driving investment opportunities both regionally and across the globe.

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At HSBC, we aim to use our expertise and intellectual capital to help our clients achieve their ambitions and to open up a world of opportunity for them.

Opening a world of opportunity in Capital Markets

At HSBC, we understand that our clients’ needs evolve and grow to adapt to market conditions, to meet new business requirements and to stay relevant in their respective sector.

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