Kuwait Financial Centre (Markaz) released a report on initial public offerings (IPOs) in the Gulf Cooperation Council (GCC) markets, revealing a 32% year-on-year decline in total proceeds for the first half (H1) of 2024. Issuers in the region raised $3.6bn through 23 offerings, compared to $5.3bn raised through 21 offerings in the same period of 2023.
Despite the overall decline, Saudi Arabia emerged as the leader in IPO activity during the first half. The kingdom raised a total of $2.1bn from 19 offerings, representing a significant 141% increase compared to H1 2023.
This surge accounted for 59% of the total GCC IPO proceeds. Conversely, the UAE witnessed a substantial drop of 67% in IPO proceeds, generating $1.3bn through only 3 offerings, which constituted 37% of the regional total. Kuwait saw a single offering raise $147m, contributing 4% to the overall figure.
The healthcare sector dominated the first half with three offerings raising a combined $788m, or nearly 22% of the total proceeds. Dr. Soliman Fakeeh Hospital’s IPO, the largest in H1 2024, was a key contributor, raising $764m.
The technology sector followed with $515m raised through the IPO of Alef Education, representing 14% of the total. Other notable sectors included industrials, consumer staples, food and beverages, and commercial & professional services.
The Saudi Arabian market (Tadawul) captured the lion’s share of IPO proceeds, accounting for 59% of the total with $1.95bn listed on the Main Market and $143m on the Nomu-Parallel Market. Dubai Financial Market (DFM) hosted offerings worth $805m (23% of the total), while Abu Dhabi Securities Exchange (ADX) saw $515m raised (14%). Kuwait’s Boursa Kuwait contributed 4% to the total with $147m.
Top Performers
Markaz’s report highlighted the top 5 GCC IPOs by proceeds in H1 2024:
- Dr. Soliman Abdulkader Fakeeh Hospital Company ($764m)
- Alef Education ($515m)
- Parkin Company ($429m)
- Spinneys Company ($375m)
- Modern Mills Company ($314m)
