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Gulf Business
3 days ago
- Business
- Gulf Business
GCC IPO market holds steady with $2.5bn raised in Q2 2025, PwC says
Image: Getty Images Companies in the Gulf Cooperation Council (GCC) raised $2.5bn through initial public offerings (IPOs) in the second quarter of 2025, according to PwC Middle East's latest IPO Watch report, as investor appetite for regional equities remained strong despite global volatility. Saudi Arabia dominated issuance, accounting for 76 per cent of total IPO proceeds, bolstered by landmark deals including Flynas, the first airline IPO in the GCC in over 15 years, and Specialized Medical Co, which raised $500m in June. Three IPOs during the quarter raised over $500m each, signalling a trend toward larger deal sizes amid sustained institutional demand. In total, the region recorded four IPOs on main exchanges and eight listings on Saudi Arabia's Nomu Parallel Market, which collectively raised $128m, up from $81m in Q2 2024. Slight decline in GCC IPO listings in Q2 Despite a slight decline in total listings, IPO proceeds remained broadly in line with Q2 2024's $2.6bn, underlining continued investor confidence in GCC capital markets. In the UAE, the Dubai Residential REIT marked the first real estate investment trust IPO since 2014, reinforcing renewed interest in alternative assets. The Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) posted strong quarterly gains of 15 per cent and 7 per cent respectively, helped by rebounds in the real estate, financials and industrials sectors. 'The global market volatility at the start of Q2, driven by uncertainty over global trade tariffs, understandably prompted some companies to reassess their IPO plans,' said Muhammad Hassan, Capital Markets leader and partner at Bond and sukuk issuance sees rise in Q2 Bond and sukuk issuance also saw sharp increases compared to the same period last year. Total bond issuance reached $4.9bn in Q2 2025, up from $0.5bn in Q2 2024, while sukuk issuance rose to $11.4bn from $9.7bn over the same period. Equity markets delivered mixed performances. Early-quarter turbulence, including a roughly 20 per cent drop in Brent crude prices, weighed on Saudi Arabia's Tadawul index, which fell 6 per cent over the quarter. However, recovery in the latter half of Q2 helped restore investor sentiment across the region. PwC noted that while Q3 is typically a quieter season for
Khaleej Times
3 days ago
- Business
- Khaleej Times
GCC share sales raised $2.4 billion in second quarter
GCC equity markets continued to attract capital and investor interest in Q2 2025, a report showed on Monday. PwC Middle East's latest IPO Watch report reveals that a total of $2.4 billion was raised across four main market IPOs and eight listings on Saudi Arabia's Nomu Parallel Market. Despite volatile equity markets early in the quarter, regional indices demonstrated resilience, reinforcing the region's position as a hub for capital markets activity. IPO proceeds in Q2 2025 were broadly in line with the same period last year ($2.6 billion in Q2 2024), despite a decline in the number of listings. Notably, three IPOs raised over $500 million each, reflecting larger deal size and sustained investor appetite. Saudi Arabia remained the most active market, accounting for 76 per cent of IPO proceeds, supported by landmark listings like Flynas, the first airline IPO in the GCC in more than 15 years, and Specialised Medical Co., which raised $500 million in June. The Nomu market also remained robust, with eight listings raising $128 million, up from $81 million in Q2 2024. In the UAE, the Dubai Residential Reit IPO marked the first Reit listing since 2014 and underlined renewed momentum in real estate and alternative assets. The DFM and ADX both rebounded strongly from early-quarter volatility, gaining 15 per cent and 7 per cent respectively, with the DFM benefiting from positive performance across the real estate, financials and industrials sectors. 'The global market volatility at the start of Q2, driven by uncertainty over global trade tariffs, understandably prompted some companies to reassess their IPO plans. Despite slower IPO activity across the GCC, Tadawul and DFM witnessed landmark IPOs such as Flynas and Dubai Residential Reit. The outlook remains cautiously optimistic for the remainder of the year subject to macroeconomic and geopolitical factors,' said Muhammad Hassan, Capital Markets Leader, Partner at PwC Middle East. Across the GCC, equity markets delivered mixed performance in Q2 2025. While early-quarter turbulence weighed on sentiment, recovery in the second half of the quarter helped restore investor confidence. Energy price fluctuations continue to influence indices, particularly in Saudi Arabia, where the TASI fell 6 per cent due to a ~20 per cent drop in Brent crude. Looking ahead, PwC highlights that while Q3 is typically a quieter period for IPOs, issuers across the GCC are gearing up for potential listings in late 2025 and early 2026 - the pipeline remains strong and diversified.
Arab News
3 days ago
- Business
- Arab News
Saudi Arabia leads GCC IPO market with $1.8bn in Q2 listings: PwC
RIYADH: Saudi Arabia dominated Gulf equity markets in the second quarter of 2025, securing 76 percent of total initial public offering proceeds amid strong investor demand for listings on its bourses. According to PwC Middle East's latest IPO Watch report, Gulf Cooperation Council equity markets raised $2.4 billion from four main market IPOs and eight listings on Saudi Arabia's Nomu Parallel Market. The proceeds were broadly in line with the $2.6 billion raised during the same period in 2024, despite a decline in the number of listings. The Kingdom's leadership was underscored by high-profile IPOs such as Flynas, the region's first airline listing in over 15 years, and Specialized Medical Co., which raised $500 million in June. Three IPOs in the region raised over $500 million each, reflecting strong investor appetite and a shift toward larger deals. 'The global market volatility at the start of Q2, driven by uncertainty over global trade tariffs, understandably prompted some companies to reassess their IPO plans,' said Muhammad Hassan, capital markets leader, partner at PwC Middle East. 'Despite slower IPO activity across the GCC, Tadawul and DFM witnessed landmark IPOs such as Flynas and Dubai Residential REIT," he added. "The outlook remains cautiously optimistic for the remainder of the year, subject to macroeconomic and geopolitical factors.' Strong IPO performance was further bolstered by rising foreign investor participation across Gulf stock markets, with net inflows jumping 50 percent quarter on quarter to reach $4.2 billion in the second quarter of 2025, according to a report by Kuwait-based asset management company Kamco Invest released earlier in July. This marked the sixth consecutive quarter of net foreign inflows into GCC equities. Kamco reported that Saudi Arabia attracted the highest inflows at $1.4 billion, up from $252.3 million the previous quarter, reflecting increased investor confidence amid the Kingdom's ongoing market liberalization and economic diversification efforts. PwC reported that the Nomu market showed continued strength, with eight listings raising $128 million in the second quarter of the year, up from $81 million during the same period last year. In the UAE, the Dubai Residential REIT IPO marked the first real estate investment trust listing since 2014, signaling renewed investor interest in alternative assets. The Dubai Financial Market and Abu Dhabi Securities Exchange rebounded from early turbulence, with the Dubai Financial Market gaining 15 percent and the Abu Dhabi Securities Exchange rising 7 percent. Regional equity indices saw mixed performance, with early-quarter uncertainty followed by recovery later in the period. In Saudi Arabia, the Tadawul All Share Index declined 6 percent, influenced by a nearly 20 percent drop in Brent crude prices. Looking ahead, PwC said that while the third quarter typically experiences reduced IPO activity, the pipeline for late 2025 and early 2026 remains strong and diversified.
Zawya
4 days ago
- Business
- Zawya
GCC IPO market holds firm, raising $2.5bln in Q2 2025
Saudi Arabia remained the most active market, accounting for 76% of IPO proceeds UAE indices outperformed other GCC indices with gains of 7% and 15% on ADX and DFM respectively over the quarter Bond and Sukuk issuance significantly higher than Q2 2024: $4.9 billion of bond issuance (vs. $0.5 billion in Q2 2024) $11.4 billion of Sukuk issuance (vs. $9.7 billion in Q2 2024) Riyadh, Kingdom of Saudi Arabia - PwC Middle East's latest IPO Watch report reveals that GCC equity markets continued to attract capital and investor interest in Q2 2025, raising $2.4 billion across 4 main market IPOs and 8 listings on Saudi Arabia's Nomu Parallel Market. Despite volatile equity markets early in the quarter, regional indices demonstrated resilience, reinforcing the region's position as a hub for capital markets activity. IPO proceeds in Q2 2025 were broadly in line with the same period last year ($2.6 billion in Q2 2024), despite a decline in the number of listings. Notably, three IPOs raised over $500 million each, reflecting larger deal size and sustained investor appetite. Saudi Arabia remained the most active market, accounting for 76% of IPO proceeds, supported by landmark listings like Flynas, the first airline IPO in the GCC in more than 15 years, and Specialized Medical Co., which raised $500 million in June. The Nomu market also remained robust, with 8 listings raising $128 million, up from $81 million in Q2 2024. In the UAE, the Dubai Residential REIT IPO marked the first REIT listing since 2014 and underlined renewed momentum in real estate and alternative assets. The DFM and ADX both rebounded strongly from early-quarter volatility, gaining 15% and 7% respectively, with the DFM benefiting from positive performance across the real estate, financials and industrials sectors. 'The global market volatility at the start of Q2, driven by uncertainty over global trade tariffs, understandably prompted some companies to reassess their IPO plans. Despite slower IPO activity across the GCC, Tadawul and DFM witnessed landmark IPOs such as Flynas and Dubai Residential REIT. The outlook remains cautiously optimistic for the remainder of the year subject to macroeconomic and geopolitical factors,' said Muhammad Hassan, Capital Markets Leader, Partner at PwC Middle East. Across the GCC, equity markets delivered mixed performance in Q2 2025. While early-quarter turbulence weighed on sentiment, recovery in the second half of the quarter helped restore investor confidence. Energy price fluctuations continue to influence indices, particularly in Saudi Arabia, where the TASI fell 6% due to a ~20% drop in Brent crude. Looking ahead, PwC highlights that while Q3 is typically a quieter period for IPOs, issuers across the GCC are gearing up for potential listings in late 2025 and early 2026 - the pipeline remains strong and diversified. About PwC At PwC, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We're a tech-forward, people-empowered network with more than 370,000 people in 149 countries. Across audit and assurance, tax and legal, deals and consulting we help build, accelerate and sustain momentum. Find out more at With over 12,000 people across 12 countries in 30 offices, PwC Middle East combines deep regional insight with global expertise to help clients solve complex problems, drive transformation, and achieve sustained outcomes. Learn more at PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details. © 2025 PwC. All rights reserved
Khaleej Times
23-07-2025
- Business
- Khaleej Times
Good growth in GCC IPO market in 2025 so far despite volatility due to tariffs row
The initial public offering (IPO) activity in the Gulf Cooperation Council (GCC) companies grew in the first half of 2025 despite volatile market conditions driven by shifts in US trade policies, according to the latest S&P Global Market Intelligence data & analysis. The company data revealed that 27 firms across the GCC raised $4.1 billion (Dh 15 billion) through IPOs during the January-June 2025 period, compared to 23 firms raising $3.57 billion (Dh13.1 billion) during the same period last year. The stock markets witnessed volatility during the first half of the year due to US President Donald Trump's announcement to impose higher tariffs on China, the European Union and other trading partners. This had a severe impact on the global equity markets, including the UAE and GCC countries. The Israel-Iran conflict also briefly impacted GCC markets in June, though not by much, as most of the region's equity markets are dominated by companies in the banking and industrial sectors, which are usually less exposed to the direct effects of geopolitical turmoil, Marmore Mena Intelligence wrote in a July market report. Saudi Arabia led the GCC region's IPO activity, hosting seven of the 10 largest IPO transactions in the first half. Budget carrier Flynas Co. had the highest gross amount offered, raising $1.09 billion from the free float of 30 per cent of its share capital on the Saudi Exchange. Dubai Holding's Dubai Residential REIT was the second largest IPO in the GCC, raising $584 million (Dh2.14 billion). Listed on the Dubai Financial Market, the IPO was oversubscribed 26 times in May. Earlier, Alpha Data raised $163.36 million and listed on the Abu Dhabi Securities Exchange. Three listings from the real estate sector were among the 10 largest IPOs in the region, led by Dubai Residential REIT. The GCC region's IPO pipeline is expected to remain strong, according to the EY Global IPO Pulse Survey conducted with institutional investors in June. However, for the broader global IPO market, the outlook for the rest of the year remains cautiously optimistic. A potential rebound "hinges on more cooperative trade frameworks, accommodative monetary policy, controlled inflation and geopolitical de-escalation," EY said. While geopolitical turbulence tempered early optimism for the global IPO market for 2025, the long-term outlook is "promising," Stuart Newman, Global IPO Centre Leader at PwC UK, wrote in a July report. "We have seen signs of a selective reopening of IPO markets in the US and China/Hong Kong and a continued supply of IPOs in India and the Middle East," Newman noted, cautioning that a market recovery will highly depend on global macroeconomic and geopolitical stability.
