A total of 13 IPOs raised $2.6 billion in the region in Q2 2024, compared to the same number of IPOs in the corresponding period in 2023 that raised $1.8 billion, says PwC Middle East’s latest IPO+ Watch.

Notable listings this quarter include Dr Soliman Abdel Kader Fakeeh Hospital Company, which raised $763 million on Tadawul, as well as Alef Education and Spinneys, two of the largest listings in the UAE.

GCC indices broadly followed the trend in oil prices, whereby we experienced lows at the end of June 2024. This is reflected in the S&P GCC Composite index which was 4.2% lower at the end of June 2024 compared to the level at the start of the year.

High levels

That said, the overall momentum in the GCC stock markets broadly remained at the high levels experienced in the corresponding quarter last year. Saudi Arabia led the IPO activity in the GCC, raising $1.6 billion or 61% of the total IPO activity recorded in the region in Q2 2024.

Moreover, the aftermarket performance for Q2 2024 IPOs was generally positive with Q2 2024 IPOs posting gains of 43% on average.

Muhammad Hassan, Capital Markets Leader at PwC Middle East, said: “We have witnessed some volatility in the first half of 2024 in the performance of GCC stock exchange indices and oil prices. That said, the number of new IPOs in the GCC continued to remain strong. Saudi Arabia continued to dominate the IPO market, with H1 2024 experiencing 19 IPOs compared to 17 IPOs in H1 2023.”

The report shows that IPO activity was seen across a diverse range of sectors this quarter, including Health Industries ($774 million), Consumer Markets ($530 million), Financial Services ($256 million), Energy, Utilities and Resources ($148 million), Industrials, Manufacturing and Automobile ($407 million), and Technology, Media and Telecommunication ($515 million). This quarter was also the first time Boursa Kuwait saw its first IPO since 2020, with the Beyout Investment Group Holding Company raising $147 million.

Sukuk issuances

In addition, there were a number of sizable sukuk issuances this quarter, raising more than $10 billion compared to $2.6 billion raised in the same period last year, indicating a robust appetite for Sharia-compliant financial products. More than a third of the sukuks were issued on Tadawul, while 67% of bonds and sukuks were issued by the regional governments.

Looking forward, the outlook for the GCC IPO market continues to remain positive with strong issuance expected for the remainder of 2024, subject to the wider geopolitical environment and oil prices

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