The equity capital markets in the UAE could see as many as five listings before year-end, according to Citi.
“We expect three to five IPOs before year-end in the UAE if the regulatory approvals are granted on time and if the pre-marketing round is successful,” Rudy Saadi, Citi’s Managing Director and Head of MENA Equity Capital Markets, told Zawya. “Perhaps we are seeing less UAE privatisations, and there’s an impression that the market is not that busy, however… we remain optimistic for the second half of 2025 and the first half of next year.”
Potential IPOs lined up include Dubai-based classifieds company Dubizzle Group, which reportedly tapped banks last year, along with hospitality group Five Holdings. In March, reports of a potential listing by Alec, a construction firm backed by the Investment Corporation of Dubai, also gained momentum.
Two potential IPOs are in focus in Abu Dhabi: The ADQ-backed $1 billion Etihad Airways float and the planned listing of IHC’s holding company 2PointZero by year-end.
Revised pipeline
While the IPO pipeline remains on track, according to Saadi, some companies have more “difficult business models” than others, resulting in valuations coming under scrutiny.
“The global emerging market funds and sector funds, including US investors, are always looking at the UAE and Saudi as these are the most active markets in the GCC. So, IPOs will still launch and price, but not at any valuation given the higher scrutiny,” he said. “If an IPO is expected to launch after summer and it is delayed, it is not necessarily due to lack of investor demand, but rather due to delayed regulatory approvals or a shareholder decision to explore a different execution window.”
Saadi dismissed that investors remained cautious in light of recent geopolitical headwinds in the region, oil price fluctuations, and a US-tariff fuelled trade war. “Domestic markets are not jittery, the windows are open, and local investors have proven to be critical to de-risk IPOs ahead of launch,” he said, citing the success of the Dubai Residential REIT, which raised AED 2.14 billion ($584 million) from its IPO in May, which saw Citi as one of the joint global bookrunners.
“We also saw Flynas which was priced on the Saudi Exchange. This was followed by the FAB Accelerated Equity Offering,” he said, referring to the $480 million secondary share sale in June that saw Citi as the bookrunner for the deal.
“The market is busy, and the pipeline is healthy despite the macro and geopolitical challenges we saw in Q2-25.”
Citi is currently advising on the rights issue of ACWA Power, as the Saudi utility giant plans to raise 7.12 billion riyals ($1.9 billion) this month by offering additional shares.
A total of 25 IPOs were recorded during the first half of 2025, two more than last year at this time and the highest first half totals since 2008, according to LSEG Deals Intelligence data, which raised a combined $4.5 billion, indicating a 25% increase from last year.
Low-cost airline Flynas raised $1.1 billion in its stock market debut in May, the largest IPO in the region so far this year.
Saadi sees growing demand for unlisted sectors such as technology, fintech, utilities, education, and transportation in the UAE and Saudi Arabia.
Market development
More private, non-government related companies in the GCC should tap the market and there should be more follow-on offerings that can slowly increase liquidity and free float in the market, Saadi noted.
Proceeds raised from follow-on offerings reached $3.1 billion during the first quarter of 2025, largely boosted by ADNOC Gas’ $2.8 billion share sale in February.
(Reporting by Bindu Rai, editing by Seban Scaria)
bindu.rai@lseg.com
