Private companies lead Gulf IPOs to raise $12bn in 2024

January 7, 2025, 11:33 AM

Gulf IPOs, GCC IPOs 2024, Gulf IPO, GCC IPO — Of the 48 GCC IPOs in 2024, the two largest were of private companies. 38 listings were in Saudi Arabia, and 27 of those on its Nomu stock market

2 of 3 largest Gulf IPOs in 2024 were private
48 IPOs in GCC
38 Saudi companies

Gulf initial public offerings raised a combined $12.1 billion last year as companies across myriad sectors including retail, healthcare, energy and financial services went public, deepening and broadening the region’s stock markets.

High subscription levels for 2024’s diverse listings demonstrate strong investor interest in gaining exposure to the Gulf’s oil and non-oil economies.

There were 48 IPOs in the six Gulf Cooperation Council countries in 2024: 38 in Saudi Arabia, seven in the UAE, two in Oman and one in Kuwait according to data from London Stock Exchange (LSEG). Combined, these flotations raised $12.06 billion.

Of the 21 Gulf IPOs that raised at least $100 million, three were by companies in the oil and gas sector, four were retailers, three were in the food and beverage industry and four were in professional or financial services, LSEG data shows.

Gulf IPOs usually range from $250 million to $750 million, although there are several each year that exceed this. Six of the 10 largest Gulf IPOs of 2024 were in the UAE, two were in Saudi Arabia and two in Oman.

Abu Dhabi-headquartered, Dubai-listed Talabat completed the Gulf’s biggest IPO for the year, selling 20 percent of its stock for $2.03 billion in November.

The next biggest IPO was that of OQ Exploration and Production, a subsidiary of Oman’s state oil company, OQ which sold a 25 percent stake to investors for $1.95 billion. Abu Dhabi retailer Lulu Retail Holdings was third, raising $1.72 billion.

The region’s biggest flotations usually involve the sale of small stakes in large government-owned companies. Yet two of the three largest of 2024 – Talabat and Lulu — are privately run companies.

“A concern in 2023 was that governments were being too aggressive, with too many large companies being brought to the market at the same time,” says Akber Khan, acting chief executive officer of Al Rayan Investment in Doha.

The relative lack of IPOs by government-related entities in 2024 indicates policymakers have heeded these worries despite a public sector imperative to float stakes and reduce involvement in the countries’ free market economies.

Tarek Fadlallah, CEO of Nomura Asset Management Middle East in Dubai, says he expects a similarly “robust delivery" of Gulf IPOs this year.

In the private sector, deregulation and economic diversification is enabling companies in various industries including leisure, healthcare, education, retail, ecommerce and transport “to come to the market with fresh ideas for investors”, he says. Finally, there is ample investor liquidity and enthusiasm for new company listings.

“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,” says Fadlallah.

Saudi Arabia’s largest IPO in 2024 was that of Dr Soliman Abdulkader Fakeeh Hospital Co, which sold $764 million of its shares. Modern Mills Co was the kingdom’s second biggest, raising $314 million.

Of Saudi Arabia’s 38 IPOs, 27 were by companies that subsequently listed on Nomu, Riyadh’s secondary market for smaller businesses.

Nomu’s biggest IPO was Fourth Milling Co’s $229 million flotation. The remaining 26 raised $277 million combined, LSEG data shows.

This story was first published on December 29, 2024