Gulf IPO proceeds up 33% but faced headwinds in Q1 2025

The Gulf Cooperation Council (GCC) region saw a double-digit growth in proceeds from initial public offerings (IPOs) during the first quarter of the year despite a challenging macroeconomic backdrop.
Share offerings raised $1.6 billion during the quarter, up by 33% from a year ago on the back of robust activity in Saudi Arabia, according to PwC Middle East. The kingdom accounted for 69% of the proceeds.
PwC noted that the region did feel some impact of macroeconomic headwinds in the first quarter, especially with the recently announced US tariffs and global recession fears, but the equity markets showed some resilience.
In early April, the S&P GCC Composite Index dropped 7%, but much of the lost ground has since been recovered, with the index currently just 1% below the beginning of the year.
'Recent global macroeconomic developments resulting from trade tariffs have had a pronounced impact on both global and GCC equity markets as well as oil prices,' noted Muhammad Hassan, PwC Middle East Capital Markets Leader.
'Although increased volatility and market uncertainty affects IPO activity in the short term, we remain positive on the long-term outlook of regional capital markets.'
IPO proceeds by sector
As for which sectors did well during the first three months of the year, the consumer markets took the top spot, with $666 million in total proceeds, underscoring investor interest in retail and lifestyle-driven businesses.
Financial services logged $400 million in proceeds, while energy, utilities and resources raised $333 million. IPO proceeds for technology, media and telecommunication sector stood at $163 million, while industrials, manufacturing and automobile attracted $34 million, and health industries recorded $5 million.
(Writing by Cleofe Maceda; editing by Seban Scaria)

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