RIYADH: Saudi Arabia strengthened its role in the Gulf Cooperation Council’s initial public offering market in 2024, raising $4.1 billion through 42 listings, the highest number in the region.
According to the latest report from The Kuwait Financial Centre, also known as Markaz, the GCC region saw an increase of 23 percent in IPO proceeds compared to 2023, reaching a total of $13.2 billion across 53 public offerings.
This growth marks a significant rise from the $10.7 billion raised through 46 listings the previous year.
The Kingdom accounted for 31 percent of the region’s total IPO proceeds, making it the second-largest contributor after the UAE. The Saudi Exchange, Tadawul, witnessed 14 IPOs on its main market, collectively raising $3.8 billion. The parallel market, Nomu, also saw 28 IPOs, generating $297 million.
“Saudi Arabia’s IPOs, on both the main and parallel markets, recorded the highest performances post-listing compared to other GCC markets,” Markaz said.
The largest Saudi IPOs of the year included Dr. Soliman Fakeeh Hospital, Almoosa Health Group, and Nice One, all gaining significant investor interest.
The energy sector emerged as the top-performing sector, raising $3.7 billion, accounting for nearly 28 percent of total IPO proceeds in the region. This was primarily driven by Abu Dhabi’s NMDC Energy and Oman’s OQ Exploration and Production and OQ Base Industries, which attracted strong investor demand.
Following energy, the consumer staples sector secured $3.1 billion, or 24 percent of total IPO proceeds, with Lulu Retail Holdings, Spinneys, and Saudi Modern Mills Co. among the most prominent.
The consumer discretionary sector raised $2.7 billion, accounting for 20 percent of total proceeds, with major IPOs including Talabat, Nice One, and Abu Dhabi National Hotels Catering.
The healthcare sector followed closely, raising $1.4 billion, representing 10 percent of total proceeds, bolstered by offerings from Dr. Soliman Fakeeh Hospital and Almoosa Health Group in the Kingdom.
Meanwhile, the industrials sector generated $877 million across 11 offerings. Additionally, financial services contributed 5 percent, technology delivered 4 percent, and utilities and materials each accounted for 1 percent of the total proceeds.
For the third consecutive year, the UAE led the GCC IPO market, raising a total of $6.4 billion, which made up 49 percent of the region’s total IPO proceeds.
The UAE’s Abu Dhabi Securities Exchange contributed $3.6 billion through four IPOs, headlined by NMDC Energy and Lulu Retail Holdings.
Meanwhile, the Dubai Financial Market saw IPOs from Talabat, Parkin Co., and Spinneys, collectively raising $2.8 billion.
Saudi Arabia followed closely with a more diverse spread of IPOs across various market segments.
Oman saw significant IPO growth, raising $2.5 billion, marking its highest proceeds to date. The country’s two major IPOs, OQ Exploration and Production and OQ Base Industries were launched as part of the Oman Investment Authority’s divestment strategy. The OQEP IPO raised $2.0 billion, making it the largest in the nation’s history.
Kuwait made a return to the IPO market after a two-year gap, hosting the IPO of Beyout Investment Group Holding, which raised $147 million on Boursa Kuwait. Bahrain also saw IPO activity, with the Al Abraaj Restaurants Group raising $24 million, marking Bahrain’s first IPO since 2018. The company’s 35 percent stake sale accounted for 0.2 percent of the total GCC IPO proceeds.
The report revealed that more than 59 percent of GCC IPOs saw their shares surge within the first 30 days post-listing.
The Kingdom recorded the highest post-listing performance, with technology, healthcare, and consumer companies driving substantial gains. Among the standout IPOs was Miahona Co., which saw its stock price soar by 147 percent within its first month of trading. The firm had floated 30 percent of its capital on Tadawul’s main market in May.
Another major gainer was Purity for Information Technology Cop., whose stock jumped 118 percent within the first 30 days after debuting on Nomu in October.
On the downside, some IPOs saw declines, with Pan Gulf Marketing Co.’s shares dropping 35 percent post-listing after debuting on Nomu in February 2024. Similarly, Yaqeen Capital Co. fell 28 percent after its June IPO, reflecting investor concerns over certain market segments, particularly milling companies.
Most GCC stock sectors saw a positive performance in 2024, with the Dubai Financial Market leading the way with a 26.9 percent gain. Boursa Kuwait followed with a 12.4 percent increase, while Muscat Securities Market and Bahrain Bourse recorded modest gains of 1.3 percent and 1.2 percent, respectively.
Meanwhile, the Saudi Tadawul rose 0.6 percent, maintaining stability, while the Qatar Stock Exchange and Abu Dhabi Securities Exchange saw slight declines of -1 percent and -1.7 percent, respectively.
Saudi Arabia is projected to maintain strong IPO momentum, with over 50 IPOs expected in the next two years.
Seven IPOs have already gained regulatory approval and are set to launch in the first quarter of 2025. Other GCC countries, including the UAE, Qatar, and Oman, are also preparing for significant IPO activity.
Established in 1974, Markaz is a well-regarded asset management and investment banking institution in the MENA region, managing $4.56 billion in assets as of September.
