IPO Activity Drops to $3.6 Billion in H1-2024

Initial Public Offerings (IPO) boom in the Gulf Cooperation Council (GCC) region slowed down a bit as the companies have raised $3.6 billion through 23 offerings during the first half of the year 2024, marking a decline of 32% by value compared to the same period of the previous year, where GCC issuers raised a total of $5.3 billion through 21 offerings.

Saudi Arabia led the region in terms of IPO proceeds during the period, raising a total of $2.1 billion from 19 offerings constituting 59% of total GCC IPO proceeds, representing an increase of 141% in the value of Saudi IPOs compared to H1-2023, according to the investment bank Kuwait Financial Centre (Markaz).

In the UAE, IPO proceeds totalled $1.3 billion during the period with 3 offerings constituting 37% of total proceeds. However, this marked a decline of 67% in the UAE proceeds compared with the same period of last year.

Kuwait has seen its first IPO since 2022 raising a total of $147 million in proceeds and constituting 4% of the total GCC proceeds during the first half of the year. Other GCC countries did not have any IPOs during the period.

Sector Allocation

The healthcare sector accounted for nearly 22% of the total proceeds during the period through three offerings amounting to a total of $788 million in proceeds led by Fakeeh Hospital IPO that raised $764 million for 21% stake.

The technology sector raised more than $515 million through the IPO of Alef Education, constituting 14% of total GCC IPO proceeds raised during the period. This was followed by IPOs from the industrials, consumer staples, food and beverages, commercial & professional services and insurance sectors that constituted 12%, 11%, 9%, 8% and 6% respectively.

Other sectors include companies from the financial services, utilities, capital goods, pharma biotech & life science, materials, software & services, and consumer services, Markaz said.

Exchange-Wise Allocation

Saudi Arabia recorded 59% of the total IPO proceeds with the value of $1.95 billion listed in the main market Tadawul and $143 million in Nomu, which is the parallel market.

The UAE markets constituted 37% of total GCC IPO during H1-2024 with a value of $804 million listed on Dubai Financial Market (DFM) and $515 million in Abu Dhabi Securities Exchange (ADX). Kuwait accounted for 4% of the total GCC IPO proceeds with $147 million listed on Boursa Kuwait.

Top Five IPOs

Saudi Arabia-based Dr Soliman Abdulkader Fakeeh Hospital Company raised $764 million in proceeds, marking the largest IPO on Tadawul in H1 of 2024. The company offered 49.8 million shares, or 21% stake, which was covered 119 times. The IPO proceeds constituted 21% of total GCC IPO proceeds.

Alef Education raised $515 million in proceeds making it the second largest IPO in 2024. The company was listed on 11th of June on ADX and offered 1.4 billion shares. The offering was covered 39 times and the proceeds constituted 14% of the total GCC IPO proceeds during the year.

Parkin IPO raised $429 million in proceeds and the company offered 749.7 million shares or 25% stake. The IPO proceeds constituted 12% of total GCC IPO proceeds and was covered 165 times.

Spinneys IPO raised a total of $375 million in proceeds.  It offered 900 million shares or 25% stake and was covered 64 times. The proceeds constituted 11% of total GCC IPO proceeds during the year. Modern Mills in Saudi Arabia raised $314 million in proceeds through the sale of 24.5 million shares, or 30% stake, and was covered 127 times. The IPO constituted 9% of total GCC IPO proceeds during the year.