EFG Hermes Poised for IPO Surge in GCC Following Landmark Deals
Deal News | Jan 23, 2025 | Zawya
In 2024, EFG Hermes led the equity capital market (ECM) league table across the MENA region by overseeing deals worth a total of $19.7 billion. This came from their involvement in 17 transactions, including both initial public offerings (IPOs) and secondary offerings. The investment bank aims to sustain this momentum into 2025, with a robust pipeline of deals focusing particularly on Saudi Arabia and the UAE. In 2024, the bank played a crucial role in Saudi-based 'Nice One' becoming the first unicorn listed on Tadawul and was also involved in the largest UAE IPO of 2024 as a joint bookrunner for Delivery Hero's divestment of a 20% stake valued at around $2 billion. MENA's equity-related issuance surged to $30 billion in 2024, marking a 126% increase. Ali Khalpey, Head of ECM at EFG Hermes, identifies Saudi as a mature market due to its domestic liquidity, with anticipated deal sizes ranging from $175 million to $2 billion. The article discusses pricing strategies, noting that several UAE IPOs faced challenges on listing day possibly due to high valuations. EFG Hermes expects consumer-focused companies to lead the way in an anticipated busy second quarter of 2025.
Sectors
- Investment Banking
- Equity Markets
- Consumer Goods
- Healthcare
Geography
- GCC – The article discusses IPO activities and market conditions in the Gulf Cooperation Council (GCC), particularly focusing on Saudi Arabia and the UAE.
- Saudi Arabia – Highlighted as a mature market for IPOs with significant domestic liquidity and anticipated deals.
- United Arab Emirates – UAE's IPO market activity is discussed, including challenges faced during initial trading days.
Industry
- Investment Banking – EFG Hermes is primarily involved in investment banking activities, particularly in equity capital markets, facilitating IPOs and secondary offerings in the GCC region.
- Equity Markets – The article centers around IPOs and follow-on offerings in the GCC, key components of the equity markets.
- Consumer Goods – The anticipated focus on consumer-focused companies for IPOs suggests relevance to the consumer goods sector.
- Healthcare – The involvement in healthcare IPOs reflects the sector's significance in EFG Hermes' recent and future activities.
Financials
- $19.7 billion – Total deal value managed by EFG Hermes from 17 deals in 2024.
- $2 billion – Value of Delivery Hero's divested stake, marking a major IPO in the UAE.
- $30 billion – Total MENA equity and equity-related issuance in 2024, according to LSEG data.
- $91 billion – Order value for Dr. Soliman Abdel Kader Fakeeh Hospital Co.'s IPO.
- $148 million – IPO value for Miahona, the Saudi water infrastructure company.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| EFG Hermes | Investment Bank | Company | EFG Hermes is a leading investment bank in the GCC region, focusing on equity capital markets. |
| Ali Khalpey | Head of ECM | Person | Ali Khalpey is the Head of ECM at EFG Hermes, providing insights into the firm's strategy and market outlook. |
| Delivery Hero | Target Company | Company | Subject of a significant IPO, involving the divestment of a 20% stake, managed by EFG Hermes. |
| Nice One | Target Company | Company | First unicorn listed on Tadawul in which EFG Hermes served as a bookrunner. |
| Dr. Soliman Abdel Kader Fakeeh Hospital Co. | Healthcare Group | Company | Involved in a significant IPO guided by EFG Hermes. |
| Miahona | Water Infrastructure Developer | Company | Part of initial IPOs related to public-private partnerships in Saudi Arabia. |
| HSBC Holdings | Competing Bank | Company | Placed second in the MENA ECM underwriting league table. |
| Goldman Sachs | Competing Bank | Company | Placed third in the MENA ECM underwriting league table. |
| LSEG | Data Provider | Company | Provides data supporting the growth in MENA equity and equity-related issuance. |