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 3.6 billion through 23 offerings during the first six months of 2024, marking a year-on-year decline in value by 32% compared to the first half of 2023, where issuers raised USD 5.3 billion through 21 offerings.
Geographical Allocation:
Markaz’s report stated that Saudi Arabia led the region in terms of IPO proceeds during the first half, raising a total of USD 2.1 billion from 19 offerings constituting 59% of total GCC IPO proceeds. This represented an increase of 141% in the value of Saudi IPOs compared to H1-2023. In the UAE, IPO proceeds totaled USD 1.3 billion during the period with 3 offerings constituting 37% of total GCC IPO proceeds. However, this marked a decline of 67% in UAE proceeds compared to the same period of last year. In Kuwait, IPO proceeds totaled USD 147 million during the period with 1 offering constituting 4% of total GCC IPO proceeds.
Sector Allocation:
The Healthcare sector accounted for nearly 22% of the total proceeds during the period through three offerings amounting to a total of USD 788 million in proceeds led by Dr. Soliman Fakeeh Hospital IPO that raised USD 764 million. The Technology sector raised more than USD 515 million through the IPO of Alef Education, constituting 14% of total GCC IPO proceeds raised during the period. This was followed by IPOs from the Industrials, Consumer Staples, Food and Beverages, Commercial & Professional Services and Insurance sectors that constituted 12%, 11%, 9%, 8% and 6% respectively. Other sectors primarily include companies from the Financial Services, Utilities, Capital Goods, Pharma Biotech & Life Science, Materials, Software & Services, and Consumer Services.
Exchange Allocation:
Saudi Arabia market (Tadawul) recorded 59% of the total IPO proceeds with the total value of USD 1.95 billion listed in its Main Market and USD 143 million in Nomu-Parallel Market. Dubai Financial Market (DFM) hosted a total of USD 805 million constituting 23% of the total GCC IPO proceeds, while Abu Dhabi Securities Exchange (ADX) saw a total of USD 515 million accounting for 14% of the total proceeds during the period. Kuwait accounted for 4% of the total GCC IPO proceeds with USD 147 million listed on Boursa Kuwait.
Top 5 GCC IPOs by Proceeds during Q1-2024:
Markaz’s report highlights the top 5 GCC IPOS by proceeds during H1-2024 as follows:
Dr. Soliman Abdulkader Fakeeh Hospital Company raised a total of USD 764 million in proceeds, marking the largest IPO in H1 2024. The company offered 49.8 million shares, or 21% stake, which was covered 119 times. The IPO proceeds constituted 21% of total GCC IPO proceeds during the period. The company was listed on Tadawul’s Main Market on the 5th of June 2024.
Alef Education IPO raised a total of 515 million USD in proceeds making it the second largest IPO in 2024. The company offered 1.4 billion shares, or 20% stake which was covered 39 times. The IPO proceeds constituted 14% of total GCC IPO proceeds during the period. The company was listed on June 11th on ADX.
Parkin Company IPO raised a total of USD 429 million in proceeds. The company offered 750 million shares or 25% stake. The IPO proceeds constituted 12% of total GCC IPO proceeds during the period and was covered 165 times. The company was listed on DFM on March 21st.
Spinneys Company IPO raised a total of USD 375 million in proceeds. Spinneys Company offered 900 million shares or 25% stake and was covered 64 times. The proceeds constituted 11% of total GCC IPO proceeds in H1 2024. The company was listed on DFM on the 9th of May.
Modern Mills Company raised a total of USD 314 million in proceeds through the sale of 24.5 million shares, or 30% stake, and was covered 127 times. Modern Mills Company IPO constituted 9% of total GCC IPO proceeds of H1 2024. The company was listed on Tawadul’s Main Market on the 27th of March.
Selected GCC IPO Pipeline:
| Company | Country | Sector | Market | Offering Size (shares) | Status |
| United Electronics Company | Saudi Arabia | Consumer Discretionary | Main – Tadawul | 7,500,000 | – |
| Al Ashghal Almoysra Company | Saudi Arabia | Services | Nomu – Tadawul | 480,000 | Closing 15 July 2024 |
| Al Hokail Academy Specialized Digital Polyclinics Company | Saudi Arabia | Healthcare | Nomu – Tadawul | 2,030,000 | Closing 21 July 2024 |
| ASG Plastic Factory Company | Saudi Arabia | Industrial | Nomu – Tadawul | 750,000 | Closing 5 August 2024 |
| Sama Water | Saudi Arabia | Consumer Staples | Nomu – Tadawul | 10,000,000 | – |
| First Avenue Real Estate Development Company | Saudi Arabia | Real Estate | Nomu – Tadawul | 16,420,000 | – |
| Mufeed Company | Saudi Arabia | Services | Nomu – Tadawul | 600,000 | – |
| Lulu Group International | Saudi Arabia/ UAE | Retail | NA | NA | Expected for H2 2024 |
About Kuwait Financial Centre “Markaz”
Established in 1974, Kuwait Financial Centre K.P.S.C “Markaz” is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.30 billion (USD 4.24 billion) as of 31 March 2024. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors’ horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz.
