Mubasher: The GCC markets have registered seven initial public offerings (IPO) during the third quarter (Q3) of 2024, raising a total of $1.70 billion in proceeds.
This marks a 6% increase compared to Q3-23, according to research released by Kuwait Financial Centre (Markaz) titled IPO in the GCC markets.
During the first nine months (9M) of 2024, the GCC issuers secured $5.20 billion through 30 offerings, compared to $6.8 billion through 29 offerings in 9M-23.
Geographical Allocation
Markaz’s report highlighted that the UAE led the region in terms of IPO proceeds during Q3, with a total of $1.10 billion from one offering constituting 69% of total GCC IPO proceeds.
Saudi Arabia’s IPO proceeds hit $512 million with 6 offerings constituting 31% of total GCC IPO proceeds during the three-month period that ended on 30 September 2024.
Exchange Allocation
Abu Dhabi Securities Exchange (ADX) recorded 69% of the total IPO proceeds registered in Q3, marking a total value of $1.10 billion listed on its Main Market.
The Saudi Exchange (Tadawul) saw a total of $459 million and $53 million listed on its Main Market and Nomu-Parallel Market, respectively, together equaling 31% of the total IPO proceeds in the GCC region.
Sector Allocation
The energy sector accounted for around 69% of the total proceeds in Q3-24 through one offering generating $1.10 billion in proceeds.
The food and beverage (F&B) industry raised nearly $271 million, constituting 16% of total GCC IPO proceeds raised during Q3. Meanwhile, the consumer cyclical sector represented 11% of the total proceeds from one IPO amounting to $188 million.
The commercial and professional services sector welcomed three IPOs constituting 3% of the total proceeds amounting to $44 million, while the materials segment witnessed one IPO valued at $9 million and constituting 1% of the total GCC IPO proceeds.
IPOs in Q3-24
Shares of NMDC Energy increased by 8% from the offer price of AED 2.80 on its trading debut on ADX, marking the largest IPO during Q3. The company sold a 23% stake for a total of $1.10 billion and was oversubscribed 31.30 times.
Al Majed for Oud Company’s shares jumped by 30% from the offer price of SAR 94 on its trading debut. The company sold a 30% stake for $188 million and had been oversubscribed 156.50 times.
The shares of Arabian Mills for Food Products edged down by 0.30% from the offer price of SAR 66 on its trading debut. The company sold a 30% stake for a total of $271 million and was oversubscribed by 132 times the offered amount.
First Avenue Real Estate Development Company’s IPO raised a total of $26.30 million after offering an 8% stake for SAR 6 per share. The offering was 7.40 times oversubscribed.
Tadawul has also hosted the IPO of Altharwah Albashariyyah Company, which raised a total of $11.70 million after selling a 15% stake and witnessing a 1.10 times oversubscription. On its debut on Nomu, the company’s shares dropped by 7% from the offer price of SAR 62.
ASG Plastic Factory Company's IPO raised a total of $8.80 million in proceeds. The company offered a 20% stake which was covered 3.20 times, while the shares surged 11% from the offer price of SAR 44 on its trading debut.
Al Ashghal Almoysra Company jumped by 4% from the offer price of SAR 50 on its trading debut. The company sold a 20% stake for a total of $6.40 million which was covered 4.3 times.
