Saudi Arabia Leads GCC IPO Market with $4.1 Billion in 2024
Saudi Arabia emerged as a dominant force in the Gulf Cooperation Council’s initial public offering market in 2024, securing $4.1 billion through 42 IPOs. This accomplishment marks the highest number of listings in the region.
According to a report by The Kuwait Financial Centre (Markaz), the GCC’s IPO proceeds increased by 23% from the previous year, reaching $13.2 billion through 53 offerings, compared to $10.7 billion from 46 listings in 2023.
Saudi Arabia contributed 31% of the region’s total IPO proceeds, second only to the UAE. The Saudi Exchange, Tadawul, hosted 14 IPOs on its main market, raising $3.8 billion, while the Nomu parallel market saw 28 IPOs, generating $297 million.
Key Saudi IPOs included Dr. Soliman Fakeeh Hospital, Almoosa Health Group, and Nice One, which attracted strong investor interest. The energy sector led the way, raising $3.7 billion, driven by Abu Dhabi’s NMDC Energy and Oman’s OQ Exploration and Production.
The consumer staples sector followed with $3.1 billion, featuring Lulu Retail Holdings and Spinneys. The consumer discretionary sector raised $2.7 billion, highlighted by Talabat and Abu Dhabi National Hotels Catering. The healthcare sector garnered $1.4 billion, supported by offerings from Dr. Soliman Fakeeh Hospital and Almoosa Health Group.
Industrials generated $877 million, while financial services, technology, utilities, and materials contributed smaller shares to the total proceeds.
The UAE led the GCC IPO market, raising $6.4 billion, 49% of the region’s total. Abu Dhabi Securities Exchange contributed $3.6 billion, and Dubai Financial Market raised $2.8 billion through IPOs from companies like Talabat and Spinneys.
Oman experienced notable IPO growth, raising $2.5 billion, with major IPOs from OQ Exploration and Production. Kuwait re-entered the IPO scene with Beyout Investment Group Holding raising $147 million, while Bahrain’s Al Abraaj Restaurants Group marked its first IPO since 2018.
Over 59% of GCC IPOs saw significant share price increases within the first month post-listing. Miahona Co. and Purity for Information Technology Cop. were standout performers, with shares rising 147% and 118%, respectively. However, some IPOs like Pan Gulf Marketing Co. faced declines.
Most GCC stock markets performed well in 2024, with Dubai Financial Market leading with a 26.9% gain. Saudi Arabia is expected to maintain strong IPO momentum with over 50 IPOs anticipated in the next two years.
Markaz, a leading asset management and investment banking institution in the MENA region, manages $4.56 billion in assets.