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KSA tops the MENA region in M&A deals

MENA mergers and acquisition deals reached $109bn in 2021. At the top of the list, the kingdom saw the most action, with $27.3 billion in mergers and acquisition activity, constituting half of the deals recorded in the region. The number of deals signed off in 2021 was up 40 percent compared to the previous 12 months, with the 1,141 agreements the highest annual total since 1980, with 1,141 deals.

According to the report from the London-based firm, investment banking fees in the MENA region hit $1.4 billion in 2021, up 3 percent from the same period in 2020 and the second-highest total on record.

JP Morgan topped any MENA Involvement M&A league table in 2021 with $43.3 billion in related activity or a 40 percent share of the market. Goldman Sachs came second with a 37 percent share of the market.

MENA equity capital markets raised $14.5 billion from 42 offerings in 2021, a 193 percent increase in proceeds from last year, and a thirteen-year high in the number of ECM deals.

Initial public offerings raised $8.2 billion in 2021, accounting for 56 percent of total proceeds, a 341 percent increase from 2020.

Follow-on issuances came in at $5.1 billion in 2021, a 65 percent rise on the previous 12 months and a 13-year high.

The largest equity offering of the year was Saudi Telecom’s follow-on issuance of $3.2 billion after the Public Investment Fund sold 6 percent of its stake. Saudi Arabia was the most active country with $8.9 billion in ECM proceeds, followed by the UAE with $4.3 billion. Citi takes the top spot in the MENA ECM league table advising on $2.5 billion of deals — a 24 percent market share.

The UAE was the top nation for Debt Capital Markets activity with $32.4 billion in related proceeds, followed by Saudi Arabia with $25.3 billion. The financial industry was the top-performing industry of 2021 with $44.3 billion in proceeds.

The largest deal of the year was the bond sale from state energy company Qatar Petroleum Corp raising $12.4 billion in June 2021. Standard Chartered takes the top spot in the MENA Debt capital markets league table in 2021 with $13.5 billion in related activity or a 13 percent market share. HSBC comes second with an 11 percent share of the market.

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