Middle East IPO Market Booming: Which Sectors Are Soaring?

Let me tell you, the findings from PwC Middle East's IPO+ Watch. In the first quarter of 2024, the Middle East's IPO market is still going strong, with many companies seeing significant gains after going public.

Take MBC Group Co. and Middle East Pharmaceutical Industries Co. (Avalon Pharma), for example. They both experienced post-IPO gains. Dubai Parkin's IPO was so hot that it was oversubscribed by a whopping 165 times, marking a record for oversubscription on the Dubai Financial Market.

Now, let's talk about the sectors that saw IPO activity. We've got consumer markets represented by companies like Parkin Company P.J.S.C. and Modern Mills for Food Products Co. Then there's health industries, with Avalon Pharma making waves. Plus, the technology, media, and telecommunications sector got a boost from MBC Group Co. We also saw some smaller offerings in software & services, financial services, industrials, manufacturing, and automobile sectors.

When it comes to where these IPOs took place, Tadawul in Saudi Arabia remains the busiest exchange in the GCC. Almost all IPOs happened either on the main market or the Nomu parallel market. On the main market, three IPOs raised a total of US$667 million, while six IPOs on the parallel market raised US$57 million.

Muhammad Hassan, Capital Markets Leader at PwC Middle East, noted that Dubai Parkin's IPO had one of the highest over-subscriptions ever seen on the DFM. And there were double-digit gains for many IPOs, especially on Tadawul. Looking forward, there's a positive outlook for IPOs in the Middle East in 2024. There's a strong pipeline of IPOs, with private sector companies eager for liquidity and access to capital. Most of the action is expected to be in Saudi Arabia and the UAE, but we're also seeing growing interest in Oman and Qatar.