Mumbai: The outlook for initial public offerings (IPOs) in the Gulf Cooperation Council (GCC) region remains decidedly optimistic for the remainder of 2024, despite experiencing a relatively subdued third quarter.
According to Muhammad Hassan, PwC Middle East’s Capital Markets Leader, a multitude of companies across diverse sectors are actively preparing for IPOs, signaling robust market activity ahead.
The conclusion of the third quarter witnessed notable IPO activity that enhances this positive projection. Among these, Oman’s largest IPO to date—OQ Exploration and Production—underscores the growing confidence in the GCC markets.
The landmark offering not only illustrates the depth of investment opportunities within the region but also reinforces the overall healthy appetite for public offerings.
Successful third quarter
Additionally, the third quarter saw a marked increase in proceeds with the successful flotation of NMDC Energy, which emerged as the largest IPO in the United Arab Emirates for the year, generating approximately $877 million.
The success was complemented by three other listings on the Nomu-Parallel Market in Saudi Arabia, contributing to an active IPO landscape.
Investments in the form of bonds also thrived during this period, with $4.4 billion raised—signifying a nearly 30 per cent increase year on year and another $5.2 billion was raised via sukuks, with 88 per cent of sukuk issuances on the Qatar Stock Exchange (QSE) or Nasdaq Dubai.
Notably, about 65 per cent of these bond and sukuk issuances originated from GCC governments, reflecting a concerted effort to bolster regional financial markets.
