The Gulf Cooperation Council (GCC) markets saw seven initial public offerings (IPOs) in quarter three of 2024 that raised a total of $1.7 billion in proceeds, marking a 6 percent increase compared to the third quarter of last year.
In its latest report titled ‘Initial Public Offerings (IPO) in the GCC markets’, Markaz revealed that GCC issuers have raised a total of $5.2 billion through 30 offerings during the first nine months of 2024, down from $6.8 billion through 29 offerings during the same period last year.
UAE leads regional growth
Markaz’s report also revealed that the UAE led the GCC region in terms of IPO proceeds in Q3, raising a total of $1.1 billion from one offering. This constituted 69 percent of total GCC IPO proceeds during the quarter. Meanwhile, Saudi Arabia’s IPO proceeds reached $512 million during the quarter with six offerings constituting 31 percent of total GCC IPO proceeds during the quarter.
As for the region’s exchanges, the Abu Dhabi Securities Exchange (ADX) recorded 69 percent of the total Q3 IPO proceeds with a total value of $1.1 billion listed on its Main Market. Saudi Arabia’s Tadawul saw a total of $459 million and $53 million on its Main Market and Nomu-Parallel Market, respectively, together constituting 31 percent of the total GCC IPO proceeds. Other exchanges in the GCC have not seen any listings during the quarter.
Energy sector sees most proceeds
The energy sector accounted for nearly 69 percent of the total proceeds through one offering amounting to a total of $1.1 billion in proceeds. The F&B sector raised around $271 million, a 16 percent share of total GCC IPO proceeds, while the consumer cyclical sector constituted 11 percent of total proceeds, amounting to $188 million.
Meanwhile, the commercial and professional services sector saw three IPOs constituting 3 percent of the total proceeds at $44 million while the materials sector saw one IPO amounting to $9 million and constituting 1 percent of the total GCC IPO proceeds during the third quarter of the year.
Seven GCC IPOs
The seven IPOs that the GCC region witnessed last quarter were:
1. NMDC Energy: 23 percent stake for a total of $1.1 billion
Shares of NMDC Energy jumped by 8 percent from the offer price of AED2.8 on its trading debut on ADX, marking the largest GCC IPO during the quarter. The company sold a 23 percent stake for a total of $1.1 billion and was oversubscribed 31.3 times. The shares were listed on ADX’s Main Market on September 11, 2024.
2. Arabian Mills for Food Products: 30 percent stake for a total of $271 million
Company shares slumped by 0.3 percent from the offer price of SAR66 on its trading debut. The company sold a 30 percent stake for a total of $271 million and was oversubscribed by 132 times the offered amount. The company was listed on Tadawul’s Main Market on October 8, 2024.
3. Al Majed for Oud: 30 percent stake for $188 million
Al Majed for Oud rose 30 percent from the offer price of SAR94 on its trading debut. The company sold a 30 percent stake for $188 million and had been oversubscribed 156.5 times. The company was listed on Tadawul’s Main Market on October 7, 2024.
4. First Avenue Real Estate Development Company: 8 percent stake for $26.3 million
The fourth largest GCC IPO raised a total of $26.3 million after offering 8 percent stake at a price of SAR6. The offering was 7.4 times oversubscribed. The company’s shares have not yet listed on Tadawul’s Nomu-Parallel Market.
5. Altharwah Albashariyyah Company: 15 percent stake for $11.7 million
Tadawul also hosted the IPO of Altharwah Albashariyyah Company, which raised a total of $11.7 million. The company sold a 15 percent stake and saw a 1.1 times oversubscription. On its debut on Tadawul’s Nomu-Parallel Market, the company’s shares plunged by 7 percent from the offer price of SAR62.
6. ASG Plastic Factory Company: 20 percent stake for $8.8 million
The IPO raised $8.8 million in proceeds. The company offered a 20 percent stake which was covered 3.2 times. The shares surged 11 percent from the offer price of SAR44 on its trading debut. The company listed its shares on Tadawul’s Nomu-Parallel Market on August 18.
7. Al Ashghal Almoysra Company: 20 percent stake for a total of $6.4 million
Finally, the GCC region’s smallest IPO raised $6.4 million for a 20 percent stake. The company’s shares jumped by 4 percent from the offer price of SAR50 on its trading debut.
Read: UAE-based retailer Lulu announces IPO, to list 25 percent shares on ADX
H1 performance
GCC companies raised total proceeds of $3.6 billion from 23 IPOs during the first six months of 2024, marking a year-on-year decline in value by 32 percent compared to the first half of 2023, when they raised $5.3 billion from 21 offerings.
Saudi Arabia led the region in terms of proceeds from IPOs during the first half (H1) of 2024, raising $2.1 billion from 19 offerings. This makes up 59 percent of total GCC IPO proceeds and marks a 141 percent increase in the value of Saudi IPOs compared to H1 of 2023.
In the UAE, proceeds reached $1.3 billion with three IPOs constituting 37 percent of total proceeds. However, this marked a decline of 67 percent in UAE proceeds compared to the same period of last year. Meanwhile, in Kuwait, IPO proceeds amounted to $147 million during H1 with one offering constituting 4 percent of total GCC IPO proceeds.
For more news on markets, click here.
