Mubasher: The GCC region raised $13.20 billion in proceeds from 53 initial public offerings (IPOs) in 2024, according to the Kuwait Financial Centre (Markaz).

This marks a 23% increase compared to 2023, when issuers raised $10.70 billion through 46 offerings.

Corporate IPOs raised $8.90 billion, equivalent to 67% of the total GCC IPO proceeds during the year, over 48 offerings.

Meanwhile, government-related entities offered five IPOs amounting to $4.30 billion only, which accounted for 33%.

Geographical Allocation

The UAE led the region in terms of IPO proceeds for the third year in a row, raising $6.40 billion, representing 49% of the total GCC IPO proceeds in 2024.

The Emirates recorded seven IPOs, with the Abu Dhabi Securities Exchange (ADX) raising $3.60 billion hosting four IPOs. NMDC Energy led the offerings after listing 23% of the total share capital, while Lulu Retail Holdings floated 2.58 billion ordinary shares.

As for Dubai Financial Market (DFM), the stock raised $2.8 billion in proceeds from IPOs of Talabat Holding, Parkin Company and Spinneys.

Saudi Arabia ranked second on the list, with a total of $4.10 billion, marking 31% of the total GCC IPO proceeds, with 42 offerings.

Saudi Exchange (Tadawul) welcomed 14 IPOs on its Main Market amounting to $3.80 billion and 28 IPOs on its Parallel Market (Nomu) with $297 million.

Dr. Soliman Fakeeh Hospital, Almoosa Health Group, and Nice One IPOs were the largest offerings listed on Tadawul in 2024.

Oman raised $2.50 billion through two IPOs on the Muscat Securities Market (MSX), while Kuwait and Bahrain followed one IPO, attracting $147 million and $24 million in proceeds, respectively.

Sector Allocation

The energy sector raised a total of $3.70 billion, accounting for nearly 28% of the total proceeds during 2024 from offerings by Abu Dhabi’s NMDC Energy and Oman’s OQEP and OQBI.

Consumer Staples segment followed with $3.10 billion, or 24% of the total proceeds, from eight IPOs, including Lulu, Spinneys, and Saudi Modern Mills for Food Products Company.

Additionally, the Consumer Discretionary sector raised $2.70 billion, constituting 20% of the total proceeds, from 9 IPOs, including Talabat, Nice One, and Abu Dhabi National Hotels Catering.

The Healthcare sector saw $1.40 billion in proceeds, representing 10% of the GCC IPO total proceeds, through seven IPOs, while the Industrials sector witnessed $877 million, equivalent to 7% of the total proceeds, from 11 offerings.

This was followed by the Financial Services sector, Technology, Utilities, and Material which constituted 5%, 4%, 1%, and 1% of total offerings, respectively.

Post-Listing Performance

Excluding December listings, over 59% of the GCC IPOs shares hiked on their first 30 days post-listing.

Saudi Arabia’s IPOs, on both the Main and Parallel markets, recorded the highest performances post-listing compared to other GCC markets.

Miahona Company posted the biggest gains with its shares rising more than 147% compared to its offering price of SAR 11.50. The company floated 30% of its capital on Tadawul’s Mian Market last May.

Furthermore, Purity for Information Technology Company gained 118% in its first 30 days after offering a 20% stake for SAR 8 on Tadawul’s Parallel Market (Nomu) in October 2024.

However, some IPOs recorded negative performance with minor declines.

The largest drop recorded was Pan Gulf Marketing Company which was listed on Nomu in February 2024. The shares fell by 35% after its offering price was set at SAR 51.

Yaqeen Capital Company also retreated by 28% from its offering price of SAR 40 in June 2024.

Markets Performance

Most of the GCC equity market indices closed 2024 on the rise. DFM outperformed its GCC peers with a 26.90% surge followed by Boursa Kuwait with a 12.40% increase.

Muscat Securities Market grew by 1.30%, quite similar to Bahrain Bourse which rose by 1.20%.

Tadawul edged up by 0.60%, while the Qatar Stock Exchange fell by 1% as well as ADX which went down by 1.70%.

IPO Pipeline

Meanwhile, Saudi Arabia is expecting more than 50 IPOs during the next two years. Seven IPOs already gained regulatory approvals and are expected to be listed by the first quarter (Q1) of 2025.

The UAE, Qatar, and Oman are also expecting several IPOs, with local companies appointing banks for potential offerings.

In Q3-24, GCC markets posted a 6% YoY rise in IPO reiterations, raising $1.70 billion in proceeds over seven offerings.

 

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