UAE Makes Significant Mark In Top 5 GCC IPOs For Q2 2024, Reveals PwC Report
PwC Middle East's latest IPO+ Watch report reveals that 13 IPOs in the region raised $2.6 billion in Q2 2024, compared to the same number of IPOs raising $1.8 billion in Q2 2023. Notable listings include Dr. Soliman Abdel Kader Fakeeh Hospital Company, which raised $763 million on Tadawul, and Alef Education and Spinneys, two significant UAE listings.
Saudi Arabia led the IPO activity in the GCC, contributing $1.6 billion or 61% of the total IPO activity recorded in Q2 2024. The aftermarket performance for these IPOs was generally positive, with an average gain of 43%. This indicates a strong investor interest despite some market volatility.
GCC Stock Market Trends
The GCC indices largely mirrored oil price trends, experiencing lows at the end of June 2024. The S&P GCC Composite index was down by 4.2% at the end of June compared to its level at the start of the year. However, overall momentum in GCC stock markets remained high, similar to levels seen in the corresponding quarter last year.
Commenting on these findings, Muhammad Hassan, Capital Markets Leader at PwC Middle East, stated: "We have witnessed some volatility in the first half of 2024 in the performance of GCC stock exchange indices and oil prices. That said, the number of new IPOs in the GCC continued to remain strong. Saudi Arabia continued to dominate the IPO market, with H1 2024 experiencing 19 IPOs compared to 17 IPOs in H1 2023."
Diverse Sector Participation
The report highlights that IPO activity spanned various sectors this quarter. Health Industries led with $774 million raised, followed by Consumer Markets with $530 million and Technology, Media and Telecommunication with $515 million. Financial Services raised $256 million, while Industrials, Manufacturing and Automobile sectors garnered $407 million.
This quarter also marked Boursa Kuwait's first IPO since 2020 with Beyout Investment Group Holding Company raising $147 million. This indicates a revival of interest in Kuwaiti markets after a period of inactivity.
Sukuk Issuances Surge
There was a notable increase in sukuk issuances this quarter, raising over $10 billion compared to $2.6 billion during the same period last year. More than one-third of these sukuks were issued on Tadawul, while regional governments issued 67% of bonds and sukuks.
The outlook for the GCC IPO market remains positive for the rest of 2024, contingent on geopolitical stability and oil prices. Strong issuance is expected as investor confidence continues to grow.
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