Saudi Arabia has solidified its position as a leading global IPO market, fueled by the landmark IPO of state oil giant Aramco in 2019 and a surge in domestic investor interest.

Ken Moelis, chairman and CEO of Moelis & Company, a NYSE-listed investment bank, highlighted the kingdom’s IPO market during the annual Future Investment Initiative (FII) summit in Riyadh.

Moelis noted the surge in liquidity for growth capital, including wealth from family transitions, describing the market as “on fire.” Moelis said that his firm is actively engaged in the market and emphasized the positive momentum driving growth.

“This is what happens when you have an exciting market, high growth, and capital that needs to go in and businesses that want the capital to grow,” he added. 

According to a recent report by Kuwait Financial Centre (Markaz), Saudi Arabia led IPO activity in the first half of 2024, raising $2.1 billion from 19 offerings—a 141% rise compared to the same period in 2023. This surge represented 59% of the total IPO proceeds across the GCC.

Despite the kingdom’s IPO surge, the report revealed a 32% year-on-year decline in total regional proceeds for the first half of 2024. 

Issuers across the region raised $3.6 billion from 23 offerings, down from $5.3 billion generated from 21 offerings during the same period in 2023.