Majority of Mideast IPOs see ‘positive aftermarket gains’ in 2024

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Middle East IPOs’ positive aftermarket performance continued into 2024, as most Q1 2024 IPOs saw significant post-IPO gains, revealed PwC Middle East’s latest IPO+ Watch.

Notable market gains include MBC Group Co and Middle East Pharmaceutical Industries Co (Avalon Pharma). Furthermore, record-breaking demand for Dubai Parkin resulted in the IPO being oversubscribed by 165 times, representing the highest ever oversubscription level achieved on the DFM.

IPO activity was seen across a number of sectors this quarter:

●Consumer Markets - Parkin Company 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 seen in the Software & Services, Financial Services, Industrials, Manufacturing and Automobile sectors.

Tadawul most active

According to PwC Middle East’s IPO Watch, Tadawul is reported to remain the most active exchange in the GCC with all but one IPOs taking place on either Tadawul main market or the Nomu parallel market. 3 IPOs raised a total of $667 million on the main market whereas 6 IPOs raised a total of $57 million on the parallel market.

Muhammad Hassan, Capital Markets Leader at PwC Middle East, commented: “Parkin's IPO had one of the highest oversubscriptions ever achieved on the DFM. In addition, double digit post IPO gains were seen from a number of IPOs this quarter, particularly on Tadawul. We expect the privatisation agenda across the GCC, combined with the ambition of private family businesses to go public, will continue to drive issuance supporting positive momentum in GCC IPO activity in 2024.”

Looking ahead, the report reveals 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 looking for liquidity and access to capital. With that, the majority of IPO activity in the region is expected to come from KSA and UAE, however, there is also growing momentum in Oman and Qatar.