MAYS IBRAHIM (ABU DHABI)
The UAE maintained its dominance in the GCC IPOs market in 2024 with $6.2 billion in proceeds, according to the latest report by Kamco Invest.
It revealed that 2024 was a record year for IPOs in the GCC, with 53 companies going public, a notable increase from 46 IPOs in 2023.
"The growth came despite marginal growth in the aggregate GCC index during 2024 for the second consecutive year as the performance was affected by a number of external factors including geopolitical issues, decline in oil price and elevated interest rates," the report stated.
In total, GCC exchanges raised $12.9 billion in IPO proceeds during the year, up 19.8% from $10.8 billion in 2023. According to the report, this marks the second highest IPO proceeds in the past five years.
However, the growth was driven by smaller-ticket IPOs, even as many post-listing companies reported gains by the end of the year. Of the 53 IPOs, 31 companies saw share price increases, while 21 experienced declines.
Gains were particularly prominent among niche sectors, including software, healthcare, and utilities, with private issuers often outpacing government-privatized entities.
Saudi Arabia remained the leader in IPO volume, with 42 of the 53 GCC IPOs debuting on either the Nomu or Main Market of the Saudi Exchange.
In Oman, the listing of two state-owned companies on the Muscat Exchange, OQ Exploration & Production and OQ Base Industries, raised an aggregate $2.5 billion, accounting for 19.3% of total IPO proceeds in the GCC.
The report pointed out that global IPO activity plunged for the third year in a row with a decline in both number of deals as well as IPO proceeds.
It cited data from LSEG showing that the total number of IPOs worldwide fell to 1,199 in 2024, as compared to 1,305 during 2023.
IPO proceeds also saw a decline, totalling $112.8 billion in 2024, which marks a 1% drop from the previous year.
According to the report, 2024 was the slowest year for global IPO activity since 2009.
The US saw a 54% increase in IPO proceeds, raising $31.6 billion in 2024, the highest in three years. Meanwhile, IPOs in China experienced a sharp decline, with proceeds falling by 71% to just $14.4 billion, the lowest level in 20 years.