GCC IPOs raise substantial funds in Q3, driven by energy growth and leading energy giants

The GCC IPO market saw a boost in Q3 2024, with a year-on-year increase in proceeds despite fewer listings, as reported by PwC Middle East. Energy growth was a key driver, with NMDC Energy’s IPO raising $877 million, marking the UAE’s largest IPO of the year.

Saudi Arabia’s parallel market, Nomu, added to the region’s financial momentum with three successful IPOs, underscoring the growing activity in the GCC IPO market. Fueled by energy growth, PwC expects strong aftermarket performance for GCC IPOs in 2024, with many top listings anticipated to trade above their initial offering prices. This trend highlights sustained investor confidence as the GCC moves towards greater economic diversification.

In addition to IPOs, bond and sukuk issuances raised nearly $9.6 billion, with the majority of these instruments listed on regional exchanges, including the Qatar Stock Exchange and Nasdaq Dubai. Governments accounted for 65% of the total, underscoring the robust role of state-driven initiatives in the region’s financial ecosystem. The growth in GCC IPO, fueled by energy growth, reflects the region’s evolving financial landscape and investor confidence.

The report highlighted that Saudi Arabia and the UAE led IPO proceeds in Q3, raising $1.7 billion collectively. The UAE contributed a substantial 69% of total GCC IPO proceeds, while Saudi Arabia followed with 31%. In Saudi Arabia, various sectors played key roles, with Arabian Mills for Food Products raising $271 million in the food and beverage sector, and Al Majed for Oud, a perfume producer, adding $188 million in the consumer cyclical category.

Several other sectors also contributed, including materials, with ASG Plastic Factory’s listing on Tadawul’s Nomu market, and commercial services, where three IPOs collectively raised $44.4 million. The report anticipates a positive end to 2024 as more companies from diverse sectors prepare for IPOs across the GCC. Driven by energy growth, the rise in GCC IPO is expected to continue, reflecting the region’s dynamic economic transformation and growing investor interest.