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In 2023, the Gulf Cooperation Council (GCC) has witnessed a substantial 56% drop in proceeds from initial public offerings (IPOs), according to a report by Kuwait Financial Centre (Markaz). This significant decline comes in stark contrast to the previous year’s figures, with the total funds raised through 29 IPOs amounting to $6.8 billion.
UAE Leads but Sees Decline
The United Arab Emirates (UAE) has taken the lead in the GCC IPO market with four offerings that generated $3.9 billion, constituting 58% of the total GCC proceeds. However, this marks a notable 63% decrease compared to the previous year. The Abu Dhabi Securities Exchange (ADX) recorded the highest proceeds at $3.7 billion, while the Dubai Financial Market (DFM) raised only $0.2 billion.
Saudi Arabia’s primary exchange, Tadawul, saw 23 IPOs in 2023, generating $2.4 billion, a 46% decrease from 2022. Meanwhile, Muscat Securities Market (MSM) had one IPO that raised $244 million.
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Top GCC IPOs in 2022
The top five GCC IPOs were led by Adnoc Gas, raising a significant $2.5 billion, surpassing Borouge’s $2 billion in 2022. This was followed by Adnoc Logistics and Services ($771 million), Presight AI ($496 million), Jamjoom Pharma ($336 million), and Lumi Rental Company ($290 million).
Upcoming IPOs
Looking ahead, Oman’s OQ Gas Network and Mulkia Investment Company are planning IPOs that could potentially raise up to $771 million, offering shares on Tadawul later this October. Additionally, View Limited Real Estate Development Co and Lana Medical Co have received approval from the Capital Market Authority in Saudi Arabia to register and offer shares on the Nomu-Parallel Market.
Future Outlook
Despite the downturn in IPO activity this year, there are expectations of 11 more IPOs in the UAE for 2023. Markaz, a leading asset management and investment banking institution in the Middle East and North Africa region, is listed on Boursa Kuwait.
Conclusion
In summary, the GCC’s IPO market has faced a substantial drop in proceeds for the first nine months of 2023, as reported by Kuwait Financial Centre (Markaz). While the UAE leads the way, the overall trend indicates a challenging year for IPOs across the region.
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Disclaimer: Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
