Saudi Arabia captures 59% of Gulf stock IPOs in H1

The value of initial public offerings in the GCC region declined by 32% year-on-year in the first half of 2024, while Saudi Arabia led the region by capturing 59% of the value of offerings.

According to the Kuwait Financial Centre report, issued today, Sunday, the value of initial public offerings for Gulf stocks amounted to $3.6 billion in the first six months of this year, executed through 23 share offerings, compared to $5.3 billion in the same period in 2023, executed through 21 operations.

Geographical distribution

The report indicated that Saudi Arabia topped the list in terms of total initial public offerings of shares during the first half of the year, with 19 initial public offerings worth $2.1 billion, an increase of 411% year-on-year, representing 59% of the value of Gulf countries’ offerings.

The United Arab Emirates came in second place with 3 initial public offerings worth a total of $1.3 billion, recording an annual decline of 67%, and representing approximately 37% of the total value of initial public offerings of Gulf stocks during the first half of this year.

The Kuwait Stock Exchange also witnessed an initial public offering with a total value of 147 million US dollars, representing 4% of the total value of Gulf initial public offerings during the period.

Sectoral distribution

The healthcare sector led in terms of total subscription value, accounting for 22% of the total issuances during the period, through 3 share offerings worth $788 million, the most prominent of which was the listing of Dr. Soliman Fakeeh Hospital Company on the main Tadawul market worth $764 million.

In second place came the technology sector, which accounted for 14% of the total value of subscriptions, through the listing of shares of Alef Education Company on the Abu Dhabi Securities Market, with a total value of $515 million.

It was followed by the industrial sector, the consumer goods sector, the food and beverage sector, the commercial and professional services sector, and the insurance sector, with rates of 12%, 11%, 9%, 8%, and 6%, respectively.

Other sectors included financial services, consumer services, utilities, software, biotechnology, life sciences, and commodities.

Trading Dominance

The Saudi Tadawul market dominated the total value of IPOs in the region, accounting for 59% of the total value of IPOs, including $1.96 billion in the main market and $143 million in the parallel Nomu market.

The Dubai Financial Market witnessed listings worth $804 million, representing 23% of the total value of Gulf subscriptions, while the Abu Dhabi Financial Market witnessed listings worth $515 million, representing 14% of the total value of Gulf subscriptions.

The Kuwait Stock Exchange accounted for 4% of the total value of Gulf IPOs, with a total value of $147 million.

Highest Value IPOs

The center's report showed the highest initial public offerings of Gulf stocks in terms of value during the first half of 2024, and the list was topped by the subscription of Dr. Sulaiman Abdul Qader Fakeeh Hospital Company, with a value of $764 million, constituting 21% of the Gulf countries' subscriptions in the first half.

The second place went to Alef Education’s initial public offering, with a total value of $515 million, representing 14% of the total value of Gulf IPOs in the first half, while the third place went to Parkin’s IPO, with a value of $428 million, equivalent to 12% of Gulf IPOs.

The fourth place went to Spinneys, with 900 million shares, representing 25% of the company’s capital, offered at a value of 375 million US dollars, which represented 11% of the total value of Gulf IPOs during the first half of the year.

The offering of shares of Modern Mills Company came in fifth place, with 24.5 million shares or 30% of the company’s capital, at a value of $314 million; representing 9% of the total value of Gulf IPOs in the first half of the year.