GCC IPOs increase in value despite drop in volume in Q3, with bonds and sukuks raising $9.6 billion

The GCC IPO market in Q3 2024 saw an increase in total proceeds, despite experiencing a decline in the number of IPOs compared to Q3 2023, according to PwC Middle East’s latest IPO+ Watch report.

The rise in proceeds was driven largely by the substantial IPO of NMDC Energy, an EPC solutions group focused on the energy sector.

This marked the biggest IPO in the UAE so far in 2024, raising $877 million and being significantly oversubscribed.

In addition to NMDC Energy, the other three IPOs during the quarter took place on Nomu, the parallel market of the Saudi Exchange (Tadawul).

GCC IPOs, Bonds, and Sukuk

The aftermarket performance of companies that completed an IPO in 2024 has remained positive, with the majority of the top 10 IPOs (by deal size) trading above their original IPO price.

Capital Markets Leader at PwC Middle East Muhammad Hassan said, “As in recent years, Q3 has seen relatively few companies entering the market. However, since the end of the quarter, several IPOs have either been completed or announced across the GCC, including OQ Exploration and Production — Oman’s largest-ever IPO — contributing to a positive outlook for the remainder of 2024.”

This quarter also saw significant activity in the bond market, with $4.4 billion raised, representing a nearly 30% increase compared to the same period in 2023.

Meanwhile, $5.2 billion was raised through sukuks, with 88% of these issuances listed on the Qatar Stock Exchange (QSE) or Nasdaq Dubai.

Notably, nearly 65% of all bond and sukuk issuance during the quarter was generated by GCC governments.

Looking ahead, the prospects for the GCC IPO market remain strong, with a healthy pipeline of companies from a variety of sectors actively preparing for their upcoming IPOs across the region.