Oman IPOs account for 19% of total GCC IPO proceeds in 2024

Muscat – The Gulf Cooperation Council (GCC) region saw 53 initial public offerings (IPOs) in 2024, raising a total of $13.2bn, marking a 23% increase from the previous year, when companies raised $10.7bn through 46 listings.

Corporate IPOs raised $8.9bn, or 67% of the total proceeds, across 48 offerings. Meanwhile, IPOs by government-related entities accounted for 33%, raising $4.3bn through five listings, according to a research report by Kuwait Financial Centre (Markaz).

UAE, Saudi and Oman lead IPO Activity

Markaz’s report noted that the UAE led the region in IPO proceeds for the third consecutive year, raising a total of $6.4bn, which accounted for 49% of the GCC’s total IPO proceeds. The UAE hosted seven IPOs, with Abu Dhabi Securities Exchange (ADX) raising $3.6bn through four listings, including those of NMDC Energy and Lulu Retail Holdings. Dubai Financial Market (DFM) raised $2.8bn from IPOs by Talabat, Parkin Company, and Spinneys.

Saudi Arabia followed with $4.1bn, or 31% of the region’s total IPO proceeds, through 42 listings. Saudi Exchange (Tadawul) hosted 14 IPOs on its Main Market, raising $3.8bn, while 28 IPOs on its Parallel Market (Nomu) generated $297mn. Notable IPOs on Tadawul included Dr. Soliman Fakeeh Hospital, Almoosa Health Group, and Nice One.

Oman IPOs raised $2.5bn, or 19% of the total, through two offerings on the Muscat Stock Market (MSX). These were the offerings by OQ Exploration and Production (OQEP) and OQ Base Industries (OQBI), which took place in the last quarter of the year. The IPOs were in line with the Oman Investment Authority’s strategy to divest certain government assets. OQEP’s offering, which raised $2bn for a 25% stake, was the largest IPO in Oman’s history.

Kuwait held its first IPO since 2022, with Boursa Kuwait listing the IPO of Beyout Investment Group Holding in the second quarter. This raised $147mn, or 1% of the GCC’s total IPO proceeds for the year. Bahrain conducted one IPO in 2024, raising $24mn.

The GCC energy sector was the largest contributor, raising $3.7bn, or nearly 28% of total IPO proceeds, through offerings by NMDC Energy in Abu Dhabi and OQEP and OQBI in Oman. The consumer staples sector followed closely, raising $3.1bn, or 24%, from eight IPOs, including Lulu Retail Holdings, Spinneys, and Saudi Modern Mills Company.

GCC IPO pipeline

Saudi Arabia is expecting over 50 IPOs in the next two years, with seven already receiving regulatory approval and expected to list by the first quarter of 2025.

The UAE, Qatar, and Oman are also anticipating several IPOs, as local companies begin appointing banks for upcoming offerings.

Post-listing performance

Excluding December listings, more than 59% of GCC IPO shares surged within the first 30 days of trading. Saudi Arabia’s IPOs, across both the Main and Parallel markets, saw the strongest post-listing performances.

Investor optimism in sectors such as technology, healthcare, and consumer goods contributed to the strong gains. Miahona Company recorded the highest increase, with its shares rising by more than 147% compared to its offering price of SAR11.5. It was followed by Purity for Information Technology Company, which gained 118% after offering a 20% stake at SAR8 per share on Nomu in October.

However, some IPOs saw negative performances, though most of the declines were modest. The largest drop was recorded by Pan Gulf Marketing Company, which listed on Nomu in February 2024. Its shares fell by 35% from its offering price of SAR51. Yaqeen Capital Company also underperformed, dropping 28% from its offering price of SAR40 in June 2024. A general negative trend was noted across milling companies, which all declined, likely due to investor scepticism regarding government support for the sector.