GCC initial public offerings (IPOs) raised $931m in the first quarter of 2024, a 73% decrease compared to the same period in 2023, according to a report by Kuwait Financial Centre “Markaz.”
Saudi Arabia bucked the trend, leading the region with $503m raised across eight IPOs, a 594% increase year-on-year. The UAE saw one IPO raise $429 million, an 87% decline compared to Q1 2023. Other GCC countries had no IPO activity during the period.
Moreover, the report indicated that the transportation sector accounted for 46% of total proceeds, driven by Dubai-based Parkin Company’s $429m IPO, the largest in the quarter. Saudi Modern Mills Company’s IPO contributed $314m, representing 34% of the proceeds. IPOs in the pharmaceutical, healthcare equipment, and materials sectors constituted the remainder.
Saudi Arabia’s exchanges accounted for 54% of the total IPO value, with $445m listed on the Main Market and $57m on the Nomu-Parallel Market. The UAE’s Dubai Financial Market (DFM) accounted for the remaining 46%.
The top five IPOs by proceeds in Q1 2024 were Parkin Company with $429m, Modern Mills Company with $314m, Middle East Pharmaceutical Industries Company with $131m, Almodawat Specialized Medical Hospital Company with $14m, and Taqat Mineral Trading Company with $11.7m.
Parkin Company’s IPO, representing 46% of total proceeds, saw 749 million shares, or a 25% stake, oversubscribed 165 times. The company was listed on the DFM on March 21st.
Modern Mills Company’s IPO, the second largest, raised $314m through the offering of 24 million shares, a 30% stake, and was oversubscribed 21 times. The company was listed on Tadawul’s Main Market on March 27th.
