A flurry of fintech, retail, and super-app firms are likely to hit the IPO market this year
2025 is predicted to be a breakout year for tech company IPOs (initial public offers) in the Middle East and North Africa (MENA) region, with as many as 25 digital-first companies projected to be on the cusp of listing, a latest IPO Readiness Index revealed.
Of these, more than 10 are expected to go public over the next few months, as per the Index by global consultancy RedSeer, which evaluates the preparedness of companies in the region for their public market debut.
Beyond IPOs, the latest RedSeer research also foresees a surge in merger and acquisition (M&A) activity across the MENA region in 2025.
Super app players such as Noon, Careem and Yassir, retail ventures such as Nice One, Floward and Ounass and fintech ventures such as Tamara, Tabby, Huspy and MNT-Halan are the digital-first companies identified by RedSeer which are likely to hit the IPO market this year.
RedSeer also listed foodtech ventures such as Kitopi, Foodics, To You and HungerStation, SaaS-based B2B ventures such as Unifonic, Salla, Zid and BAYZAT, tech-based classified platforms such as Property Finder, Dubizzle, Bayt and SellAnyCar.com, and logistic and travel segment ventures such as Almosafer, iMile and TruKKer as the tech companies to watch out for listing plans.
“The MENA region’s IPO landscape is evolving rapidly, with digital-first companies leading the charge,” Akshay Jayaprakasan, Dubai-based Associate Partner at RedSeer Strategy Consultants, which specialises in online services, told Arabian Business.
“2025 is poised to be a defining year for innovation, public listings, and strategic consolidation across key sectors in the digital economy,” he said.
Jayaprakasan said fintech, food delivery, classifieds and online retail are sectors to keep an eye out for.
“Our IPO readiness index suggests 10 IPOs of tech-driven enterprises this year,” he said.
Tech IPOs surge ahead
The research said the tech sector will see increased deal activity in 2025, with as many as 10 IPOs expected – an all-time high for the MENA region, as against 6 last year.
“Over the past three years, MENA has witnessed a significant surge in IPO activity, with 2022 and 2023 marking the peak, each hosting approximately 50 IPOs.
“A closer examination of the 2024 figures reveals a compelling shift: the growing prominence of digital-first companies in the IPO landscape,” the RedSeer study said.
In 2024, digital-first companies accounted for an impressive 32 per cent of IPO proceeds in MENA, buoyed by an increase in deal volume to six and the landmark listing of Talabat.
“This trend underscores the region’s accelerating digital transformation and the readiness of tech-driven enterprises for public markets,” RedSeer said.
As for its forecast on a surge in M&A activities in 2025, RedSeer said in sectors like foodtech in Saudi Arabia, where more than10 sizable players are competing for a slice of the pie, and fintech in Egypt, with numerous small players offering similar value propositions, consolidation is inevitable.
“This wave of M&A will not only reshape these industries but also catalyse future IPOs as companies achieve greater scale and market strength,” Jayaprakasan said.
MENA listings rise
RedSeer said MENA’s IPO momentum continued in 2024 with 39 deals completed and 10 more announced till December second week.
The offers together mopped up around $10 billion in proceeds last year.
Retail, fintech and healthcare were the top sectors in terms of IPOs in 2024, with sector leaders such as Talabat, LuLu and NMDC making frenzy in the market with their issues mopping up record capital – $2 billion, $1.72 billion and $877 million, respectively, RedSeer said.
“MENA companies are achieving profitability and sustainability faster, leading to quicker IPO timelines,” the study said.
“Smaller companies are also increasing within the mix, highlighting the ability of the region to create sustainable businesses without going all out for scale,” it said.
The study also showed that deal sizes have reduced in the last three years as companies are ready for IPOs at a smaller scale.
From $415 million in 2022, the average deal size has sharply come down to $223 million in 2023.
2024, however, saw a slight increase in the average deal size to $272 million.
RedSeer said both B2C and B2B maintaining the IPO momentum in the region, with B2C seeing a major spike in proceeds owing to marquee listings such as Talabat and LuLu.
Government IPOs decline sharply
The RedSeer research also showed that government company IPOs have significantly declined in the last two years, while B2C and B2B IPOs have maintained momentum.
While IPOs by government-owned companies saw a sharp fall to just 9 per cent of the total number of initial issues in 2024 from a high of 38 per cent in 2022 and 25 per cent in 2023, the number of B2B company IPOs shot up to 59 per cent last year from 28 per cent in 2022.
They accounted for 44 per cent of the total IPOs in 2023.
B2C companies, on the other hand, remained almost steady during this period, accounting for 32 per cent of the total IPOs in 2024 – one per cent higher from 2023, but two per cent lower than that in 2022.
In value terms, however, IPOs by B2C companies accounted for the largest share of capital raised – at 66 per cent in 2024 led by listing of Talabat and LuLu – from a mere 18 per cent in 2023 and 25 per cent in 2022, the study showed.
The capital raised by government-owned companies during this period also saw a sharp fall to just 10 per cent last year from a whopping 64 per cent in 2022 and 63 per cent in 2023.
The total number of IPOs also saw a major fall in the last three years – from 53 in 2022 to 48 in 2023 and 34 last year.
The share of digital companies going for IPOs during the last three years – both in terms of the number of IPOs and the share of capital raised – has shot up – from just 7 per cent in 2022 ($22 billion) to 13 per cent ($11 billion) to a significant 32 per cent ($10 billion) in value terms – a trend which RedSeer said is expected to continue in the coming years.
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