Markaz: GCC IPOs raised $5.1bn in 2025

11/01/2026 03:46 AST

Kuwait Financial Centre (Markaz) released its research report titled "Initial Public Offerings (IPO) in the GCC markets", stating that the region has seen 40 offerings during the year 2025 raising a total of $5.1 billion in proceeds, marking a 61 percent decrease compared to the previous year, where issuers raised $13.2 billion through 53 offerings. Corporate IPOs raised $3.9 billion, or 76 percent of the total GCC IPO proceeds during the year, through 37 offerings. While IPOs offered by government related entities only accounted for 24 percent, amounting to $1.2 billion through 3 offerings.

Geographical allocation
Markaz's report stated that Saudi Arabia led the region in terms of IPO proceeds, raising a total of $4.1 billion which constituted 79 percent of the total GCC IPO proceeds during the year. Saudi Exchange (Tadawul) saw 13 IPOs on its Main Market amounting to a total of $3.7 billion and 23 IPOs on its Parallel Market (Nomu) raising a total of $336 million.

The Emirates saw 2 IPOs during the year where Abu Dhabi Securities Exchange (ADX) raised $163 million through Alpha Data's IPO. On the other hand, Dubai Financial Market (DFM) raised a total of $381 million through Alec Holdings IPO.

Oman raised $333 million during the year, or 7 percent of the total GCC IPO proceeds through Asyad Shipping Company IPO on the Muscat Securities Market (MSM). While Kuwait saw the IPO of Action Energy Company during the last quarter of the year. The offering raised a total of $180 million constituting 4 percent of the total GCC IPO proceeds for the year.

Sector allocation
The Industrials sector raised a total of $1.9 billion, accounting for nearly 37 percent of the total proceeds during 2025with the largest contribution coming from Saudi Arabia's Flynas with a value of $1.1 billion. This was followed by the Real Estate sector with USD 1.2 billion, or 23 percent of the total proceeds, from 7 IPOs including Umm Al-Qura for Development and Construction and Dar Al Majed Real Estate Company. The Healthcare sector raised a total of $508 million, constituting 10 percent of the total proceeds, from 3 IPOs from SMC Hospitals in the Main Market of Tadawul and Basma Adeem and Wajd Life Trading Company in the Nomu Market of Tadawul.

Moreover, the Consumer Discretionary sector saw $479 million in proceeds, constituting 9 percent of the total proceeds, through 10 IPOs all in Saudi Arabia while the Financial Services sector saw $400 million from Derayah Financial Company's IPO on Tadawul, constituting 8 percent of the total GCC IPO proceeds during the year. This was followed by the Technology, Energy, Materials, and Consumer Staples sectors which constituted 4 percent, 4 percent, 3 percent and 3 percent of total offerings respectively.

Post-listing performance
The top IPO gainers of 2025 benefited from attractive offer pricing, strong post-listing liquidity, and exposure to sectors with clear growth or defensive characteristics. Listings on Tadawul, across both the Main Market and Nomu, saw performance supported by broad investor participation and sustained demand. The largest gainer was Ratio Specialty Company listed on Nomu in March 2025 with shares that rose by 190 percent after its offering price at SAR 10.

On the other hand, some IPOs have recorded negative performance being weighed down by overvaluation, limited liquidity, and exposure to low-growth or margin-pressured sectors. Companies faced structural challenges and muted post-listing investor interest, which negatively impacted performance throughout the year. The weakest performer was Smoh Almadi listed on Nomu in January 2025 with shares that drop by 60 percent after its offering price at SAR 22.

GCC markets performance
Most of the GCC equity market indices ended 2025 on a positive note. Muscat Securities Market outperformed its GCC peers with a 28.1 percent gain, followed by Boursa Kuwait with a 25.3 percent increase. Dubai Financial Market increased by 17.2 percent while the Abu Dhabi Exchange gained 6.1 percent. Bahrain Bourse and the Qatar Stock Exchange recorded increases of 4.1 percent and 1.8 percent respectively. In contrast, Saudi Tadawul declined by 12.8 percent during the year.

GCC IPO pipeline
GCC IPO activity is expected to rise in 2026 compared with 2025, driven by stable global interest rates and ongoing divestment initiatives. With strengthening investor confidence and evolving regulatory frameworks, the region is likely to attract a broader range of companies preparing for public offerings.

Kuwait Times