Middle East IPOs continued to demonstrate positive aftermarket performance in 2024, as revealed by PwC Middle East’s latest IPO+ Watch report. Most Q1 2024 IPOs experienced significant post-IPO gains.
Notable market gains were observed in the case of MBC Group Co and Middle East Pharmaceutical Industries Co (Avalon Pharma).
Additionally, the IPO of Dubai Parkin experienced an unprecedented surge in demand, with a subscription rate of 165 times, marking the highest level of oversubscription ever achieved on the Dubai Financial Market (DFM).
During this quarter, IPO activity spanned various sectors, including:
- Consumer Markets: Parkin Company P.J.S.C. and Modern Mills for Food Products Co.
- Health Industries: Middle East Pharmaceutical Industries Co. (Avalon Pharma).
- Technology, Media, and Telecommunication: MBC Group Co.
- Smaller-scale offerings were also observed in the Software & Services, Financial Services, Industrials, Manufacturing, and Automobile sectors.
PwC Middle East’s IPO+ Watch highlights that Tadawul remains the most active exchange in the GCC, with all but one IPO taking place on either the Tadawul main market or the Nomu parallel market. On the main market, three IPOs raised a total of $667 million, while on the parallel market, six IPOs raised a total of $57 million.
Read more: Oil drives Middle East IPOs to achieve best semi-annual performance ever
Privatization initiatives driving GCC IPO activity
According to Muhammad Hassan, Capital Markets leader, PwC Middle East, it was noted that the IPO of Parkin experienced a remarkable level of oversubscription on the DFM. Furthermore, several IPOs in the current quarter, particularly on Tadawul, witnessed significant post-IPO gains in double digits.
It is anticipated that the privatization initiatives throughout the GCC region, along with the aspirations of private family businesses to become publicly listed, will persist in stimulating issuance and fostering a favorable momentum in GCC IPO activity throughout 2024, Hassan added.
Looking forward
The report suggests that the IPO landscape in the Middle East is poised for continued strength in 2024, with a robust pipeline of IPOs, including private sector companies seeking liquidity and access to capital. The majority of IPO activity is expected to originate from UAE and Saudi Arabia, although there is also growing momentum in Oman and Qatar.
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