Logo of EFG Hermes
Saudi Arabia is set to remain the region’s IPO hotspot in 2025, continuing its dominance in equity markets. 
The Kingdom has led issuance activity for the past four to five years, and that momentum is expected to carry forward, according to Karim Meleka, Co-Head of Investment Banking at EFG Hermes.
Speaking to Argaam at a recent financial markets forum, Meleka highlighted a wave of IPOs across multiple sectors.
Healthcare, real estate, retail, and financial services are all seeing increased listing activity, driven by strong investor appetite and expanding market depth.
EFG Hermes has been actively involved in the healthcare sector. Last year, the firm took two companies public and is planning to list two more in 2025.
The real estate sector is also heating up, particularly in facilities management, where the firm is working on two upcoming IPOs.
Retail is another sector drawing increased IPO interest. Major players are looking to tap public markets, Meleka noted, citing Nice One’s recent debut.
The beauty e-commerce company became Saudi Arabia’s first unicorn to go public, a move that could attract further investor interest to the sector.
Financial services are also seeing a pickup in IPO activity. One firm listed in 2024, and two more are slated to go public in the second half of this year, reflecting a broad-based market expansion.
Beyond IPOs, Meleka sees secondary offerings gaining traction in 2025. He described them as “the next big test” for market liquidity and believes stronger participation in these deals will enhance capital market efficiency.
Private equity firms are also expected to play a bigger role. Many are looking to exit through secondary offerings, a trend that could drive more deal flow.
The most active segment will likely be transactions in the $100 million–$200 million range, with more issuers and investors keen to test market conditions, he added.
On the merge and acquisition (MA) front, Meleka said valuation gaps between public and private markets are narrowing in some sectors, setting the stage for more dealmaking.
EFG Hermes was involved in several major transactions last year, including Maarif for Education and training Co.’s acquisition of a Riyadh-based school group, Meleka added.
He said the firm is eyeing similar deals in the food and retail sectors this year.
Meleka expects two to three large transactions to close in 2025, with a major food and beverage deal already in the pipeline.
Logo of EFG Hermes
Saudi Arabia is set to remain the region’s IPO hotspot in 2025, continuing its dominance in equity markets.
The Kingdom has led issuance activity for the past four to five years, and that momentum is expected to carry forward, according to Karim Meleka, Co-Head of Investment Banking at EFG Hermes.
Speaking to Argaam at a recent financial markets forum, Meleka highlighted a wave of IPOs across multiple sectors.
Healthcare, real estate, retail, and financial services are all seeing increased listing activity, driven by strong investor appetite and expanding market depth.
EFG Hermes has been actively involved in the healthcare sector. Last year, the firm took two companies public and is planning to list two more in 2025.
The real estate sector is also heating up, particularly in facilities management, where the firm is working on two upcoming IPOs.
Retail is another sector drawing increased IPO interest. Major players are looking to tap public markets, Meleka noted, citing Nice One’s recent debut.
The beauty e-commerce company became Saudi Arabia’s first unicorn to go public, a move that could attract further investor interest to the sector.
Financial services are also seeing a pickup in IPO activity. One firm listed in 2024, and two more are slated to go public in the second half of this year, reflecting a broad-based market expansion.
Beyond IPOs, Meleka sees secondary offerings gaining traction in 2025. He described them as “the next big test” for market liquidity and believes stronger participation in these deals will enhance capital market efficiency.
Private equity firms are also expected to play a bigger role. Many are looking to exit through secondary offerings, a trend that could drive more deal flow.
The most active segment will likely be transactions in the $100 million–$200 million range, with more issuers and investors keen to test market conditions, he added.
On the merge and acquisition (MA) front, Meleka said valuation gaps between public and private markets are narrowing in some sectors, setting the stage for more dealmaking.
EFG Hermes was involved in several major transactions last year, including Maarif for Education and training Co.’s acquisition of a Riyadh-based school group, Meleka added.
He said the firm is eyeing similar deals in the food and retail sectors this year.
Meleka expects two to three large transactions to close in 2025, with a major food and beverage deal already in the pipeline.
