The value M&A transactions with any Mena involvement reached $69.7 billion during the first nine months of 2022, 17% less than the value recorded during the same period in 2021, said Refinitiv, a London Stock Exchange Group business.

Despite the decline in value, the number of deal announcements in the region increased 5% from last year to the highest first nine-month total since our records began in 1980. Deals involving a Mena target totalled $37.0 billion during the first nine months of 2022, down 38% from the same period last year and a four-year low.

The number of deals declined 1% from last year but marked the second highest first nine-month deal count of all time.  Inbound deals involving a non-Mena acquiror declined 73% from last year’s all-time record to $10.0 billion.  Domestic deals increased 14% in value to $28.0 billion, as the number of transactions exceeded 400 for the first time during any first nine-month period since our records began.

 Mena outbound M&A totalled $27.9 billion, up 70% compared to the value recorded during the same period in 2021 and a 13-year high. The financial sector was most active, with deals targeting financial companies accounting for 22% of Mena target M&A during the first nine months of 2022, followed by Industrials with 17%. The UAE was the most targeted nation, followed by Saudi Arabia and Egypt. Citi topped the any Mena involvement announced M&A financial advisor league table during the first nine months of 2022.

Investment Banking
An estimated $1.1 billion worth of investment banking fees were generated in Mena during the first nine months of 2022, 5% more than the same period in 2021 and the highest first nine-month total since 2008.

Almost half of this year’s fees were generated during the first three months of the year, with quarterly fees declining in the following two quarters.  Fees totalled $186.4 million during the third quarter of 2022, the lowest quarterly total in the region in six years.

Advisory fees earned from completed M&A transactions in the region reached $339.6 million, a 26% increase from last year and the second highest first nine-month fee total since our records began in 2000.  Equity capital markets underwriting fees increased 134% from last year to $284.4 million, the highest first nine-month total in fourteen years, while syndicated lending fees reached a four-year high of $377.7 million.  Debt capital markets fees declined 78% to $52.4 million, the lowest first nine-month total since 2008.

Mena fees account for 1.3% of investment banking fees earned globally so far during 2022, the highest share since 2008.  Thirty-seven percent of all Mena fees were generated in the United Arab Emirates during the first nine months of 2022, followed by Saudi Arabia (33%) and Oman (9%). JP Morgan earned the most investment banking fees in the region during the first nine months of 2022, a total of $84.3 million or an 8% share of the total fee pool.

Equity Capital Markets
Mena equity and equity-related issuance totalled $15.3 billion during the first nine months of 2022, the highest first nine-month total since 2008.  Proceeds raised by companies in the region increased 166% compared to the first nine months of 2021, while the number of issues increased 110%.  Initial public offerings accounted for 86% of activity during the first nine months of 2022, while follow-on issuance accounted for 14%.

 A total of 29 initial public offerings were recorded during the first nine months of 2022, 21 more than last year at this time and the highest level since 2008.  They raised a combined $13.2 billion, setting a first nine-month record in the region.  Dubai Electricity & Water Authority raised $6.1 billion in its stock market debut in April.

The state utility’s initial public offering is the 3rd largest IPO globally so far this year and the second largest Mena IPO of all time. HSBC took first place in the Mena ECM underwriting league table during the first nine months of 2022 with an 18.5% market share, followed by Saudi National Bank SJSC.

Debt Capital Markets
Mena debt issuance totalled $18.3 billion during the first nine months of 2022, down 80% from the value recorded during the same period in 2021 and the lowest first nine-month total since 2011.  The number of issues declined 68% from last year at this time. $2.0 billion was raised during the third quarter of 2022, down 74% from the previous quarter and the lowest quarterly total in thirteen years.

The UAE was the most active issuer nation during the first nine months of 2022, accounting for 61% of total bond proceeds, followed by Saudi Arabia (23%), Qatar (5%) and Bahrain (5%).

 Financial issuers account for 68% of proceeds raised during the first nine months of 2022, while Government & Agency issuers account for 22%. HSBC took the top spot in the Mena bond bookrunner ranking during the first nine months of 2022, with $2.9 billion of related proceeds, or a 16% market share. – TradeArabia News Service