In Q2 2024, the GCC witnessed a significant uptick in IPO activity, with 13 listings raising a combined $2.64 billion. This surge in capital was primarily focused on the healthcare, education, and technology sectors.
According to PwC Middle East’s latest IPO+ Watch, “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. That said, the overall momentum in the GCC stock markets broadly remained at the high levels experienced in the corresponding quarter last year.”
Fast Company Middle East notes that:
“Saudi Arabia was at the forefront of this growth, securing $1.6 billion. The largest deal was the $764 million listing of Dr. Soliman Abdul Kader Fakeeh Hospital Co on the Tadawul stock exchange, accounting for 29% of the region’s total IPO proceeds. Other significant IPOs in Saudi Arabia included Saudi Manpower Solutions Company, which raised $240 million, and Rasan Information Technology Company, which secured $224 million.”
Muhammad Hassan of Trade Arabia reported in Zawya 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.”
There were also large sukuk issuances this quarter which raised more than $10 billion as compared to $2.6 billion in the same period last year. More than a third of the sukuks were issued on Tadawul.
