GCC companies raise $931m from IPOs in Q1-24 – Report

GCC companies raise $931m from IPOs in Q1-24 – Report

Mubasher: Initial public offering (IPO) in the GCC has raised $931 million in the first quarter (Q1) of 2024, a 73% year-on-year (YoY) plunge from $3.50 billion in the comparative period of 2023, according to a report by Kuwait Financial Centre (Markaz).

The region saw nine offerings in Q1-24, versus 12 offerings in Q1-23, the report said.

Saudi Arabia led the region in the three-month period that ended on 31 March 2024, raising total proceeds of $503 million from eight offerings, a 594% YoY surge from Q1-23, constituting 54% of the region's total.

On the other hand, the value of IPO proceeds in the UAE dropped 87% YoY to $429 million in Q1-24, which is still making up 46% of the region’s total during the period.

Top Sectors

In Q1-24, the transportation sector led the way, representing nearly 46% of total proceeds. This was largely driven by Dubai-based Parkin Company's IPO, which raised $429 million, marking the largest offering of the period.

Following closely, the food and beverages sector raised over $314 million, accounting for 34% of total GCC IPO proceeds.

IPOs from the pharmaceutical, healthcare equipment, and materials sectors constituted 14%, 2%, and 1% respectively.

Other IPOs included companies from consumer Services, financial services, commercial services, and technology sectors, among others.

Tadawul