Middle East IPO Market Set for Continued Positive Performance in 2024
The Middle East IPO market is gearing up for a year of strong aftermarket performance, building on significant gains seen in the first quarter, according to a recent report.
Saudi Stock Exchange Leads the Way
PwC’s IPO+ Watch report highlighted the Saudi Stock Exchange as a major player in the Gulf Cooperation Council’s IPO market, hosting the majority of launches in the region. This underscores the appeal of the Middle East to investors on the lookout for exciting opportunities.
Tadawul Dominates GCC IPO Activity
The report noted that Tadawul remains the most active exchange in the GCC, with almost all IPOs taking place on either the main market or the Nomu parallel market.
Strong Start in Q1
In the primary market, three IPOs raised a total of $667 million, while in the secondary market, six offerings raised $57 million. Notable success stories include MBC Group Co. and Avalon Pharma, both experiencing significant market gains.
Dubai Parking Breaks Records
Dubai Parking attracted a lot of attention in the market, setting a new record for subscription levels at the Dubai Financial Market. The offering was oversubscribed by a whopping 165 times.
Diverse Investment Opportunities
The IPO landscape in the Middle East in the first quarter showcased a range of sectors, providing diverse investment opportunities. From consumer markets to health industries and technology, media, and telecommunications, the IPO wave touched various sectors.
Optimism for Future Growth
Muhammad Hassan, capital markets leader at PwC Middle East, expressed optimism about the future, pointing to Parkin’s oversubscription and post-IPO gains as positive signs. He expects the privatization agenda and the ambition of private family businesses to go public to drive further IPO activity in the GCC.
Strong Pipeline Ahead
Looking ahead, the report predicts continued strength in the IPO landscape for the rest of 2024, fueled by a robust pipeline. Private sector companies seeking liquidity and access to capital are expected to drive much of this activity, with Saudi Arabia and the UAE leading the way. There is also growing momentum in markets like Oman and Qatar, indicating a broader regional expansion of IPO activity.