Mubasher: The GCC raised $3.60 billion through 23 initial public offerings (IPOs) in the first half (H1) of 2024, a 32% year-on-year (YoY) drop from $5.30 billion raised through 21 offerings in the comparative period of 2023, according to a report by Kuwait Financial Centre (Markaz).
Saudi Arabia led the region in IPO proceeds during H1-24, raising $2.10 billion from 19 offerings. This accounts for 59% of total GCC IPO proceeds and marks a YoY 141% increase in the value of Saudi IPOs.
In the UAE, IPO proceeds totalled $1.30 billion from three offerings, constituting 37% of the total GCC IPO proceeds but reflecting a 67% decline compared to the same period last year.
Kuwait saw IPO proceeds of $147 million from one offering, which made up 4% of the total GCC proceeds.
Top Sectors
The healthcare sector was the leading contributor, accounting for 22% of total proceeds with three offerings amounting to $788 million, led by the Dr. Soliman Abdel Kader Fakeeh Hospital Company’s (Fakeeh Care Group) IPO, which raised $764 million.
The technology sector followed with $515 million raised through the Alef Education IPO, constituting 14% of the total proceeds.
Other notable sectors included industrials (12%), consumer staples (11%), food and beverages (9%), commercial & professional services (8%), and insurance (6%).
Leading Markets
Regarding exchange allocation, Saudi Arabia’s market (Tadawul) recorded 59% of the total IPO proceeds, with $1.95 billion listed on its Main Market and $143 million on the Nomu-Parallel Market.
The Dubai Financial Market (DFM) hosted $805 million, constituting 23% of the total GCC IPO proceeds, while the Abu Dhabi Securities Exchange (ADX) saw $515 million, accounting for 14% of the total proceeds.
Moreover, Boursa Kuwait contributed 4% with $147 million.
Proceeds from IPOs in the GCC plummeted by 73% YoY to $931 million in the first quarter (Q1) of 2024 from $3.50 billion.
