Gulf IPOs raised $3.6bn in the first half of 2024, according to Kuwait Financial Centre “Markaz”.
In a research report titled “Initial Public Offerings (IPO) in the GCC markets”, it noted the region has seen 23 offerings during the first six months of 2024.
It represents a year-on-year decline in value by 32 per cent compared to the first half of 2023, where issuers raised $5.3bn through 21 offerings.
Gulf IPOs in 2024
The Markaz report stated that Saudi Arabia led the region in terms of IPO proceeds during the first half, raising a total of $2.1bn from 19 offerings constituting 59 per cent of total GCC IPO proceeds.
This represented an increase of 141 per cent in the value of Saudi IPOs compared to H1 2023.
In the UAE, IPO proceeds totalled $1.3bn during the period with three offerings constituting 37 per cent of total GCC IPO proceeds.
However, this marked a decline of 67 per cent in UAE proceeds compared to the same period of last year.
In Kuwait, IPO proceeds totalled $147m during the period with one offering constituting 4 per cent of total GCC IPO proceeds.
The Healthcare sector accounted for nearly 22 per cent of the total proceeds during the period through three offerings amounting to a total of $788m in proceeds led by Dr. Soliman Fakeeh Hospital IPO, which raised $764m.
The Technology sector raised more than $515m through the IPO of Alef Education, constituting 14 per cent of total GCC IPO proceeds raised during the period.
This was followed by initial public offerings from the Industrials, Consumer Staples, Food and Beverages, Commercial and Professional Services and Insurance sectors that constituted 12 per cent, 11 per cent, 9 per cent, 8 per cent and 6 per cent respectively.
Other sectors primarily include companies from the Financial Services, Utilities, Capital Goods, Pharma Biotech & Life Science, Materials, Software & Services, and Consumer Services.
Saudi Arabia market (Tadawul) recorded 59 per cent of the total initial public offering proceeds with the total value of $1.95bn listed in its Main Market and $143m in Nomu-Parallel Market.
Dubai Financial Market (DFM) hosted a total of $805m constituting 23 per cent of the total GCC IPO proceeds, while Abu Dhabi Securities Exchange (ADX) saw a total of $515m accounting for 14 per cent of the total proceeds during the period.
Kuwait accounted for 4 per cent of the total GCC initial public offering proceeds with $147m listed on Boursa Kuwait.
Top 5 GCC IPOs by proceeds during H1 2024
- Dr. Soliman Abdulkader Fakeeh Hospital Company raised a total of $764m in proceeds, marking the largest initial public offering in H1 2024. The company offered 49.8 million shares, or 21 per cent stake, which was covered 119 times. The proceeds constituted 21 per cent of total GCC initial public offering proceeds during the period. The company was listed on Tadawul’s Main Market on the June 5, 2024
- Alef Education initial public offering raised a total of $515m in proceeds making it the second largest offering in 2024. The company offered 1.4bn shares, or 20 per cent stake which was covered 39 times. The proceeds constituted 14 per cent of total GCC initial public offering proceeds during the period. The company was listed on June 11 on ADX
- Parkin Company IPO raised a total of $429m in proceeds. The company offered 750 million shares or 25 per cent stake. The proceeds constituted 12 per cent of total GCC IPO proceeds during the period and was covered 165 times. The company was listed on DFM on March 21
- Spinneys Company initial public offeringraised a total of $375m in proceeds. Spinneys Company offered 900 million shares or 25 per cent stake and was covered 64 times. The proceeds constituted 11 per cent of total GCC initial public offering proceeds in H1 2024. The company was listed on DFM on the May 9
- Modern Mills Company raised a total of $314m in proceeds through the sale of 24.5 million shares, or 30 per cent stake, and was covered 127 times. Modern Mills Company initial public offering constituted 9 per cent of total GCC offerings proceeds of H1 2024. The company was listed on Tawadul’s Main Market on March 27.
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