Gulf preliminary public choices raised a mixed $12.1 billion in 2024 as corporations throughout myriad sectors together with retail, healthcare, power and monetary providers went public, deepening and broadening the area’s inventory markets.
High subscription ranges for this yr’s numerous listings display robust investor curiosity in gaining publicity to the Gulf’s oil and non-oil economies.
There had been 48 IPOs within the GCC international locations this yr: 38 in Saudi Arabia, seven within the UAE, two in Oman and one in Kuwait in response to information from London Stock Exchange (LSEG). Combined, these flotations raised $12.06bn.
“There has been a robust delivery of Gulf IPOs this year and I’d expect a similar amount to be raised next year,” stated Tarek Fadlallah, CEO of Nomura Asset Management Middle East in Dubai.
Of the 21 Gulf IPOs that raised at the least $100 million, three had been by corporations within the oil and fuel sector, 4 had been retailers, three had been within the meals and beverage business and 4 had been in skilled or monetary providers, LSEG information exhibits.
Gulf IPOs normally vary from $250m to $750m, though there are a number of every year that exceed this. Six of the ten largest Gulf IPOs of 2024 had been within the UAE, two had been in Saudi Arabia and two in Oman.
Abu Dhabi-headquartered, Dubai-listed Talabat accomplished the Gulf’s greatest Stock Launch for the yr in November promoting 20pc of its inventory for $2.03bn. Shares within the meals supply firm, a subsidiary of Germany’s Delivery Hero, had been down 10.6pc on their Stock Launch worth to Friday’s shut.
The subsequent greatest Stock Launch was that of OQ Exploration and Production, a subsidiary of Oman’s state oil firm, OQ which bought a 25pc stake to buyers for $1.95bn. Abu Dhabi retailer LuLu Retail Holdings was third, elevating $1.72bn.
The area’s greatest flotations normally contain the sale of small stakes in giant government-owned corporations. Yet two of the three largest of 2024 – Talabat and LuLu — are privately run corporations.
“A concern a year ago was that governments were being too aggressive, with too many large companies being brought to the market at the same time,” stated Akber Khan, performing chief govt of Al Rayan Investment in Doha.
The relative lack of IPOs by government-related entities this yr signifies policymakers have heeded these worries regardless of a public sector crucial to drift stakes and scale back involvement within the international locations’ free market economies.
In the personal sector, deregulation and financial diversification is enabling corporations in numerous industries together with leisure, healthcare, training, retail, e-commerce and transport “to come to the market with fresh ideas for investors”, stated Fadlallah. Finally, there’s ample investor liquidity and enthusiasm for brand new firm listings.
“These storylines seem unchanged going into next year,” added Fadlallah.
“It’s sustainable because there’s a strong pipeline of companies waiting to go public and because the quantum of money being raised is not staggeringly large. It’s significant, but it’s not overwhelming.”
Saudi Arabia’s largest Stock Launch was that of Dr Soliman Abdulkader Fakeeh Hospital, which bought $764m of its shares. Modern Mills was the dominion’s second greatest, elevating $314m.
Of Saudi Arabia’s 38 IPOs, 27 had been by corporations that subsequently listed on Nomu, Riyadh’s secondary marketplace for smaller companies.
Nomu’s greatest Stock Launch was Fourth Milling’s $229m flotation. The remaining 26 raised $277m mixed, LSEG information exhibits.
