GCC Capital Markets Watch - Q1 2024
Highlights
- Q1 2024 IPO proceeds notably lower than Q1 2023
- Positive aftermarket performance continues into 2024
- IPO activity seen across a number of sectors this quarter
- Tadawul continues to be the most active exchange in the GCC
- Positive outlook for the remainder of 2024
Q1 2024 IPO proceeds notably lower than Q1 2023
- Whilst volumes were higher, proceeds were notably lower as there were no large scale IPOs in the first quarter (in Q1 2023 ADNOC Gas raised $2.5bn).
- 4 IPOs raised >$100m in the first quarter ($1.1bn combined), the average proceeds for all other IPOs was $10m.
- Total Q1 2024 IPO proceeds were $1.2bn (Q1 2023: $3.3bn).
IPOs
Q1 2024 Highlights
"Parkin's IPO had one of the highest oversubscriptions ever achieved on the DFM and double digit post IPO gains were seen from a number of IPOs this quarter, particularly on Tadawul. We expect the privatization agenda across the GCC, combined with the ambition of private family businesses to go public, will continue to drive issuance supporting positive momentum in GCC IPO activity in 2024."
Muhammad HassanPwC Middle East Capital Markets LeaderTop 5 GCC IPOs in Q1 2024
Parkin Company P.J.S.C.
- Exchange
- DFM
- Pricing date
- 21 March 2024
- Money raised
- $429m
Modern Mills for Food Products Co.
- Exchange
- Tadawul
- Pricing date
- 27 March 2024
- Money raised
- $314m
MBC Group Co.
- Exchange
- Tadawul
- Pricing date
- 8 Jan 2024
- Money raised
- $222m
Middle East Pharmaceutical Industries Co. (Avalon Pharma)
- Exchange
- Tadawul
- Pricing date
- 27 February 2024
- Money raised
- $131m
Al-Modawat Specialized Medical Co.
- Exchange
- Tadawul - Nomu
- Pricing date
- 25 February 2024
- Money raised
- $14m
Q1 IPO activity by country (2019 - 2023)
- KSA and UAE were the only active markets in Q1 2024.
- Parkin P.J.S.C. was the only UAE IPO in the first quarter, listing on the DFM.
IPOs that took place in the GCC in Q1 2024
Kingdom of Saudi Arabia (KSA)
Number of IPOs in Q1 2024: 9United Arab Emirates (UAE)
Number of IPOs in Q1 2024: 1Q1 2024 IPO proceeds by sector ($m)
Q1 2024 GCC equity market performance
Source: Eikon (Thomson Reuter), PwC Analysis
- Notwithstanding ongoing geopolitical tensions, GCC equity markets performed well in Q1, supported by improving macroeconomic conditions including slower consumer inflation, positive non-oil growth indicators and continued public sector investment.
- Q1 2024 ended with the majority of GCC indices posting marginal gains from the start of the year.
- The QSE General index and ADX General index saw declines of 9% and 4% respectively.
Bonds and Sukuks
Q1 2024 Highlights
PwC's Global IPO Watch 2023 and Outlook for 2024
Subscribe to PwC's GCC IPO+ Watch
How PwC can help you
An IPO is a significant step and a transformational change. It’s best to do it in partnership with experts who’ve been through the process many times before, and who can provide the right people and skills you’ll need for the journey. At PwC, we have a dedicated IPO team to help you:
weigh up the pros and cons of an IPO
assess how ready you are for a listing
navigate every phase of the complex IPO process
prepare your business for life as a public company
Our team works on IPO readiness assessments, pre-IPO implementation services, IPO execution, project management, structuring advice and post-IPO support.
If required we are able to bring in experts from the wider PwC network to support areas such as; strategy, tax advice, management incentives, corporate governance and compliance.
Readiness - Getting ready for an IPO
Our IPO Readiness Assessment is a diagnostic review of the critical areas needed for a successful IPO so that management has a clear roadmap to deliver a successful IPO and operate as a listed business.
We’ll highlight where current processes, procedures, structures and practices fall short of regulatory requirements and best practices. We’ll also create a timeline to remediate any gaps, and form some of the habits of a successful listed company.
Execution - Making the IPO process run smoothly
Executing an IPO involves carefully orchestrating different teams that all need to work together to deliver the IPO, while making sure business as usual runs smoothly.
We’ll help you with this by providing end to end support to effectively and efficiently complete the filing process with the regulatory authority in addition to any pre-IPO implementation activities.
We can also act as your IPO diligence advisors performing the required due diligence, assisting with MD&A drafting in relation to a prospectus and giving you practical advice throughout the IPO process.
Authors
Muhammad Hassan
Capital Markets Leader, PwC Middle East
Danny Barclay
Director, Capital Markets, PwC Middle East
Contact us
Haitham Aljabry
Finance & Accounting Consulting, Partner, PwC Middle East
Tel: +966 54 732 2225
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