Today's Edition
MAYS IBRAHIM (ABU DHABI)
In the second quarter of 2024, initial public offerings (IPOs) across the Gulf Cooperation Council (GCC) region experienced a notable increase compared to the same period last year, as revealed by PwC Middle East's latest IPO+ Watch report.
A total of 13 IPOs raised $2.6 billion in Q2 2024, up from $1.8 billion raised by 13 IPOs in Q2 2023.
Leading the quarter was Dr. Soliman Abdel Kader Fakeeh Hospital Company, which raised $764 million on the Tadawul Main Market, while the Saudi Manpower Solutions Company raised $240 million.
In the UAE, Alef Education Holding plc secured $515 million on the Abu Dhabi Securities Exchange (ADX) and Spinneys 1961 Holding Plc raised $375 million.
Meanwhile, Boursa Kuwait saw its first IPO since 2020 with Beyout Investment Group Holding Company raising $147 million.
Despite a downward trend in GCC equity markets and lower oil prices earlier in the year, the indices have started to recover since the end of Q2 2024, aided by a rebound in oil prices.
The aftermarket performance of Q2 2024 IPOs has been robust, with average gains of 43%.
Saudi Arabia dominated the IPO landscape in the region, accounting for 77 percent of the total IPO proceeds, raising $1.6 billion.
Muhammad Hassan, PwC Middle East Capital Markets Leader, commented: "We have witnessed some volatility in the first half of 2024 in the performance of GCC stock exchange indices and oil prices. That said, the number of new IPOs in the GCC continued to remain strong."
Sector-wise, the health industries led with $774 million, followed by consumer markets with $533, then technology, media, and telecommunications ($515 million), industries, manufacturing and automobile $407, energy, utilities, and resources ($148), and financial services ($256).
Overall, the GCC IPO market demonstrated resilience and recovery, with significant gains and a diversified sectoral presence in Q2 2024.
