The GCC equity markets witnessed a surge in IPO activity during 2024, with a record 53 companies making their debut on regional exchanges.

According to Kuwait-based Kamco Invest, while the aggregate GCC index experienced marginal growth for the second consecutive year, driven by external factors like geopolitical tensions, declining oil prices, and rising interest rates, the IPO market remained resilient.

The GCC IPO market demonstrated strong demand from local investors in 2024, with many offerings significantly oversubscribed. Companies in niche sectors like software, healthcare, and utilities, boasting strong fundamentals and attractive dividend yields, often outperformed. Government privatisation initiatives, notably in Saudi Arabia and Oman, continued to fuel IPO activity.

Saudi Arabia led the pack in terms of the number of IPOs, with 42 companies listing on the Nomu Parallel Market and the Main Market. However, the UAE maintained its dominance in terms of IPO proceeds, raising $6.2 billion. Oman significantly contributed to the overall proceeds with the successful listing of two state-owned energy firms, OQ Exploration & Production and OQ Base Industries, raising a combined $2.5bn.

Looking ahead to 2025, the region boasts a robust pipeline of potential IPOs, featuring high-profile companies such as Flynas and Tabby in Saudi Arabia and Etihad Airways and Dubai Holdings in the UAE.

Globally, IPO activity declined for the third consecutive year, with both the number of deals and proceeds decreasing. While the Americas and Europe, the Middle East, India and Africa (EMEIA) regions witnessed growth, the Asia Pacific region experienced a significant decline. The US emerged as the top market in terms of IPO proceeds, while India led in terms of the number of deals. 

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