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Outlook for GCC IPOs remains positive for 2024, PwC report shows

Four notable listings completed since the end of the quarter across a diverse range of sectors

The GCC IPO market in Q3 2024 experienced an increase in proceeds, despite a decrease in volume compared to Q3 2023, a report showed on Tuesday.

According to PwC Middle East’s latest IPO+ Watch, the higher proceeds was driven by the sizable IPO of energy sector focused EPC solutions group NMDC Energy, the biggest IPO in the UAE so far this year, raising $877 million and significantly oversubscribed. The remaining three listings took place on Nomu, the Saudi Exchange (Tadawul) parallel market.

The aftermarket performance for companies completing an IPO in 2024 continues to be positive with the majority of the top 10 IPOs (by deal size) trading ahead of the IPO price.

Muhammad Hassan, capital markets leader at PwC Middle East, said: “As has been the case in recent years, Q3 has seen relatively few companies come to market. Since the end of the quarter we have seen a number of IPOs either completed or announced across the GCC, including OQ Exploration and Production, Oman’s largest ever IPO, supporting the positive outlook for the remainder of 2024.”

The quarter also saw $4.4 billion raised through bonds, nearly a 30 per cent increase when compared to the same period in 2023. Meanwhile, $5.2 billion was raised through sukuks, with 88 per cent of these sukuks issued on either the Qatar Stock Exchange (QSE) or Nasdaq Dubai. Nearly 65 per cent of bond and sukuk issuance this quarter derived from GCC governments.

Looking forward, PwC says the outlook for the GCC IPO market remains positive with a healthy IPO pipeline of companies from a diverse range of sectors busy preparing for their upcoming IPOs across the region.