Saudi Arabia drives GCC IPO market in H1; nets $3.4bn in proceeds

15/07/2025 05:02 AST

The initial public offerings (IPOs) in Gulf markets raised $3.4 billion through 24 listings during the first half of 2025, down 6% from a year earlier, as regional activity showed signs of cooling after a strong 2024. In the same period last year, 23 IPOs raised $3.5 billion, according to a report by Kuwait Financial Centre (Markaz).

Saudi Arabia led the region, accounting for 85% of total proceeds with $2.8 billion raised through 22 offerings - a 36% increase in value compared with the same period in 2024, Markaz said in its report titled 'Initial Public Offerings (IPO) in the GCC Markets.'

The UAE recorded just one IPO during the period, with software firm Alpha Data raising $163 million - an 88% decline in IPO proceeds year-on-year. Oman too had one listing, with Asyad Shipping Company raising $333 million. Kuwait, Qatar and Bahrain saw no IPO activity during the first half of the year.

Industrials sector leads IPO activity
The industrials sector was the top performer, raising $1.4 billion, or 43% of total GCC IPO proceeds, led by Flynas' $1.1 billion offering. Asyad Shipping and Itmam Consulting also contributed to the sector's performance.

The real estate sector raised $576 million (17% of total), driven by a $523 million IPO from Umm Al Qura for Development and Construction. The healthcare sector followed with $505 million, of which $500 million came from the Specialized Medical Company, said Markaz in its report.

Other sector contributions included financial services (12%), technology (6%), consumer staples (4%), materials (3%), and consumer discretionary (1%).

Mixed post-listing performance
Ten out of the 24 IPOs delivered positive returns by the end of H1 2025. Asyad Shipping, listed on March 12, recorded the strongest performance, gaining 835%. Umm Al Qura rose 51% over the same period.

Flynas, the largest IPO on Saudi Arabia's Tadawul exchange during the period, fell 3.4% on its trading debut but ended the half-year nearly flat, down 0.2% from its offer price, said the report.

Several companies in the materials sector posted negative returns. Hedab Alkhaleej Trading fell 30%, Dkhoun National Trading dropped 27%, and Service Equipment Co. declined 26%.

Equity market performance - a mixed fare
Equity markets across the GCC saw mixed performance in the first six months of 2025. Boursa Kuwait led gains with an 18.1% rise, followed by Dubai Financial Market (+10.6%), Abu Dhabi Securities Exchange (+5.7%) and Qatar Stock Exchange (+1.7%).

In contrast, the Muscat Securities Market fell 1.7%, Bahrain Bourse declined 2.1%, and Saudi Arabia's Tadawul dropped 7.6%.

On the future outlook, Markaz said Saudi Arabia is expected to maintain its lead in IPO activity, supported by listings across multiple sectors, particularly those backed by the Public Investment Fund (PIF).

The UAE is projected to see renewed issuance in the industrial and technology sectors, it added.

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