GCC IPOs raise USD 931 million in Q1 2024

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Kuwait City, May 12: Kuwait Financial Centre “Markaz” released its research report titled “Initial Public Offerings (IPO) in the GCC markets”, stating that the region has raised total proceeds of USD 931 million through 9 offerings during the first three months of 2024, marking a year-on-year decline in value by 73% compared to the first quarter of 2023, where issuers raised USD 3.5 billion through 12 offerings.

Geographical Allocation:

Markaz’s report stated that Saudi Arabia led the region in terms of IPO proceeds during the quarter, raising a total of USD 503 million from 8 offerings constituting 54% of total GCC IPO proceeds. This represented an increase of 594% in the value of Saudi IPOs compared to Q1-2023. In the UAE, IPO proceeds totaled USD 429 million during the period with 1 offering constituting 46% of total GCC IPO proceeds. However, this marked a decline of 87% in UAE proceeds compared to the same period of last year. Other GCC countries did not have any IPOs during the period.

Sector Allocation:

The Transportation sector accounted for nearly 46% of the total proceeds during the period through the offering of Dubai based Parkin Company which marked the largest IPO during the period raising a total of USD 429 million.

The Food & Beverage sector raised more than USD 314 million through the IPO of Saudi Modern Mills Company, constituting 34% of total GCC IPO proceeds raised during the period. This was followed by IPOs from the Pharmaceutical, Healthcare Equipment, and Materials sectors that constituted 14%, 2%, and 1% respectively. Other IPOs primarily include companies from the Consumer Services, Financial Services, Commercial Services and Technology sector among others.

Exchange Allocation:

Saudi Arabia recorded 54% of the total IPO proceeds with the value of USD 445 million in the Main Market and USD 57 million in Nomu-Parallel Market. United Arab Emirates markets constituted 46% of total GCC IPO during Q1-2024 with a value of USD 429 million listed on Dubai’s exchange (DFM).

Top 5 GCC IPOs by Proceeds during Q1-2024:

Markaz’s report highlights the top 5 GCC IPOS by proceeds during Q1-2024. Parkin Company raised a total of USD 429 million in proceeds from floating 749 million shares, or 25% stake, which was covered 165 times. Parkin Company IPO proceeds constituted 46% of total GCC IPO proceeds in the period. The company was listed on DFM on the 21st of March 2024.

Modern Mills Company IPO raised a total of 314 million USD in proceeds making it the second largest IPO in 2024. The company was listed on March 27th on Tadawul’s Main Market and offered 24 million shares, or 30% stake. The offering was covered 21 times and the proceeds constituted 34% of total GCC IPO proceeds in Q1 2024.

Middle East Pharmaceutical Industries Company IPO raised a total of USD 131 million in proceeds. The company offered 6 million shares or 30% stake. The IPO proceeds constituted 14% of total GCC IPO proceeds in Q1 2024 and was covered 54 times. The company was listed on Tadawul’s Main Market on February 27th.

Almodawat Specialized Medical Hospital Company IPO raised a total of USD 14 million in proceeds. Almodawat Specialized Medical Hospital Company offered 475 thousand shares or 20% stake and was covered 1.36 times. The proceeds constituted 2% of total GCC IPO proceeds in Q1 2024. The company was listed on Tawadul’s Nomu Parallel Market on the 25th of February.

Taqat Mineral Trading Company raised a total of USD 11.7 million in proceeds through the sale of 2.4 million shares, or 20% stake, and was covered 1.09 times. Taqat Mineral Trading Company IPO constituted 1% of total GCC IPO proceeds of Q1 2024. The company was listed on Tawadul’s Nomu Parallel Market on the 28th of March.

Selected GCC IPO Pipeline:

CompnayCountrySectorMarketOffering Size (shares)Status
Qomel Company Saudi ArabiaHealthcareNomu – Parallel500,000Closing 25 April 2024
Mohammed Hadi AlRasheed CompanySaudi ArabiaConstructionNomu – Parallel1,440,000Closing 6 May 2024
Yaqeen Capital CompanySaudi ArabiaFinancialNomu – Parallel3,000,000Closing 12 May 2024
Lulu Group InternationalSaudi Arabia/ UAERetailNANAExpected for H2 2024
Spinneys Dubai LLCUAERetailNANAExpected for H2 2024

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