The Middle East is facing a positive aftermarket performance in 2024, according to PWC’s latest IPO+ Watch. Majority of IPOs in Q1 2024 witnessed substantial post-IPO gains, with standout performances from companies like MBC Group Co. and Middle East Pharmaceutical Industries Co. (Avalon Pharma).
Dubai Parkin also saw record-breaking demand, oversubscribed by 165 times.
The IPO landscape in the Middle East exhibited diversity across various sectors including consumer markets, health industries, technology, media, and telecommunication, as well as smaller-scale offerings in software & services, financial services, industrials, manufacturing, and automobile.
According to the report, Tadawul stood as the most active exchange in the GCC region with almost all of the IPOs taking place on its marketplace. Three IPOs raised a total of $667 million.
Muhammad Hassan, Capital Markets Leader at PwC Middle East said: “Parkin’s IPO had one of the highest oversubscriptions ever achieved on the DFM. In addition, double-digit post-IPO gains were seen from a number of IPOs this quarter, particularly on Tadawul. We expect the privatisation 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.”
The IPO landscape in the Middle East appears promising for the rest of 2024, the report revealed, with a pipeline of IPOs, driven by private sector companies seeking liquidity. While Saudi Arabia and the UAE are expected to lead the IPO activity, momentum is also observed in Oman and Qatar.
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