RIYADH: According to a recent research, IPOs in the Gulf Cooperation Council region had a year-over-year rise in proceeds in the third quarter of 2024, even if the number of listings decreased. According to PwC Middle East, NMDC Energy’s listing, which raised $877 million and was the largest initial public offering (IPO) in the United Arab Emirates this year, drove the rise in the energy industry this quarter.
With three listings, Nomu, the Saudi Arabian parallel market, also helped the quarter’s performance. According to PwC, the majority of the top 10 IPOs by transaction size would trade above their initial offering prices, indicating good aftermarket performance for companies completing IPOs in 2024. According to this forecast, big IPOs should be well received by the market in the upcoming year, and robust investor demand may raise post-IPO stock values.
Relatively few businesses have entered the market in Q3, as has been the case in previous years. Muhammad Hassan, capital markets head at PwC Middle East, stated, “We have seen a number of IPOs either completed or announced across the GCC since the end of the quarter, including OQ Exploration and Production, Oman’s largest ever IPO, supporting the positive outlook for the remainder of 2024.”
The GCC raised $4.4 billion in bond issuances in the third quarter, which is about 30% more than the previous year. Furthermore, $5.2 billion was raised through the issue of sukuk, of which 88 percent were listed on the Nasdaq Dubai or Qatar Stock Exchange.
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