The initial public offerings (IPO) in the GCC markets has raised total proceeds of $3.6 billion through 23 offerings during the first six months, marking a year-on-year decline in value by 32% compared to H1 last year, where it raised $5.3 billion through 21 offerings, according to Kuwait Financial Centre (Markaz).

 

Markaz in its report titled 'Initial Public Offerings (IPO) in the GCC markets,' stated that Saudi Arabia led the region in terms of IPO proceeds during the first half, raising a total of $2.1 billion from 19 offerings constituting 59% of total GCC IPO proceeds. 

 

This represented an increase of 141% in the value of Saudi IPOs compared to H1-2023. In the UAE, IPO proceeds totaled $1.3 billion during the period with 3 offerings constituting 37% of total GCC IPO proceeds.

 

However, this marked a decline of 67% in UAE proceeds compared to the same period of last year. In Kuwait, IPO proceeds totaled $147 million during the period with 1 offering constituting 4% of total GCC IPO proceeds.

 

Sector Allocation:

 

The Healthcare sector accounted for nearly 22% of the total proceeds during the period through three offerings amounting to a total of $788 million in proceeds led by Dr. Soliman Fakeeh Hospital IPO that raised $764 million. 

The Technology sector raised more than $515 million through the IPO of Alef Education, constituting 14% of total GCC IPO proceeds raised during the period. 

 

This was followed by IPOs from the Industrials, Consumer Staples, Food and Beverages, Commercial & Professional Services and Insurance sectors that constituted 12%, 11%, 9%, 8% and 6% respectively. Other sectors primarily include companies from the Financial Services, Utilities, Capital Goods, Pharma Biotech & Life Science, Materials, Software & Services, and Consumer Services, said the Markaz report.

 

The top 5 GCC IPOs by Proceeds during Q1-2024 are:

 

*Dr. Soliman Abdulkader Fakeeh Hospital Company - It raised a total of $764 million in proceeds, marking the largest IPO in H1 2024. The company offered 49.8 million shares, or 21% stake, which was covered 119 times. The IPO proceeds constituted 21% of total GCC IPO proceeds during the period. The company was listed on Tadawul’s Main Market on the 5th of June 2024.

*Alef Education IPO - It raised a total of 515 million $in proceeds making it the second largest IPO in 2024. The company offered 1.4 billion shares, or 20% stake which was covered 39 times. The IPO proceeds constituted 14% of total GCC IPO proceeds during the period. The company was listed on June 11th on ADX.

*Parkin Company IPO - It raised a total of $429 million in proceeds. The company offered 750 million shares or 25% stake. The IPO proceeds constituted 12% of total GCC IPO proceeds during the period and was covered 165 times. The company was listed on DFM on March 21st.

*Spinneys Company IPO - It raised a total of $375 million in proceeds. Spinneys Company offered 900 million shares or 25% stake and was covered 64 times. The proceeds constituted 11% of total GCC IPO proceeds in H1 2024. The company was listed on DFM on the 9th of May.

*Modern Mills Company - It raised a total of $314 million in proceeds through the sale of 24.5 million shares, or 30% stake, and was covered 127 times. Modern Mills Company IPO constituted 9% of total GCC IPO proceeds of H1 2024. The company was listed on Tawadul’s Main Market on the 27th of March.

 

Accordiong to Markaz, Saudi Arabia market (Tadawul) recorded 59% of the total IPO proceeds with the total value of $1.95 billion listed in its Main Market and $143 million in Nomu-Parallel Market. 

 

Dubai Financial Market (DFM) hosted a total of $805 million constituting 23% of the total GCC IPO proceeds, while Abu Dhabi Securities Exchange (ADX) saw a total of $515 million accounting for 14% of the total proceeds during the period. 

 

Kuwait accounted for 4% of the total GCC IPO proceeds with $147 million listed on Boursa Kuwait, it added.-TradeArabia News Service