Markaz: GCC IPOs raise $3.4bln in H1 2025
Geographical Allocation:
Markaz's report stated that Saudi Arabia led the region in terms of IPO proceeds for the first half of the year, raising a total of USD 2.8 billion through 22 offerings which constituted 85% of the total GCC IPO proceeds during the year representing a 36% increase in IPO value compared to H1 2024.
Alpha Data, a software firm in the United Arab Emirates was the only IPO for the country during the first half of 2025 raising USD 163 million. This marks a 88% decline in proceeds for the UAE compared to the same period last year. Moreover, Oman's Asyad Shipping Company was the only IPO in the country during the first half of the year raising USD 333 million. Kuwait, Qatar, and Bahrain saw no IPOs during the first half of 2025.
Sector Allocation:
The Industrials sector raised a total of USD 1.4 billion, accounting for nearly 43% of the total proceeds during H1 2025 from offerings led by Flynas' USD 1.1 billion IPO followed by Asyad Shipping Company and Itmam Consulting Company. This was followed by the Real Estate sector which accounted for 17% of total proceeds for H1 2025 with USD 576 million of which Umm Al Qura for Development and Construction contributed USD 523 million. The Healthcare sector raised USD 505 million of which Specialized Medical Company's IPO raised USD 500 million. The Financial Services, Technology, Consumer Staples, Materials and Consumer Discretionary sectors contributed 12%, 6%, 4%, 3% and 1% respectively.
Post-Listing Performance:
At the end of H1 2025, 10 out of the 24 IPOs had shown positive return compared to their offer price. Asyad Shipping Company which was listed on the 12th of March 2025, achieved the highest gain at 835% by the end of H1 2025. Saudi Arabia's Umm Al Qura for Development and Construction Company followed recording a gain of 51% during H1 2025.
Flynas the largest IPO on Tadawul and the region during H1 2025 witnessed a 3.4% drop in the first day performance but ended the period recording a 0.2% drop compared to its offer price.
On the other hand, many companies in the Materials sector witnessed negative returns compared to their offer price. Hedab Alkhaleej Trading Co. witness a decrease of 30% in its share price during H1 2025, Dkhoun National Trading Company decreased by 27% and Service Equipment Co. decreased by 26%.
GCC Markets Performance
The GCC equity market indices have experienced mixed performance in the first six months of 2025. Boursa Kuwait outperformed its GCC peers with a 18.1% increase year to date followed by Dubai Financial Market with a 10.6% increase. The Abu Dhabi Exchange (ADX) and Qatar Stock Exchange followed increasing 5.7% and 1.7% respectively. On the other hand, the Muscat Securities Market witnessed a decrease of 1.7%, Bahrain Bourse by 2.1% and Saudi Tadawul by 7.6%.
GCC IPO Pipeline:
Saudi Arabia is expecting to continue its dominance in the IPO market with strong activity across multiple sectors by PIF-led listing while the UAE expects to witness activity in the industrials and technology sectors. Moreover, Kuwait's Capital Markets Authority has officially launched a new regulatory framework to support the listing and trading of emerging companies on Boursa Kuwait in hopes to encourage public listings and enhance the Kuwaiti market
-Ends-
About Kuwait Financial Centre 'Markaz'
Established in 1974, Kuwait Financial Centre K.P.S.C 'Markaz' is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.44 billion (USD 4.67 billion) as of 31 March 2025. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors' horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz.
For further information, please contact:
Sondos Saad
Corporate Communications Department
Kuwait Financial Centre K.P.S.C. "Markaz"
Email: Ssaad@markaz.com
markaz.com
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