IPOs ‘raised $10.1 billion in GCC markets last year’
Initial Public Offerings (IPOs) in the GCC markets raised $10.1 billion in 2023, marking a significant 55 per cent decline compared with the previous year’s $22.7bn, according to a report by Kuwait Financial Centre (Markaz).
The UAE led the region in terms of proceeds, raising $5.5bn through seven offerings, but this still represented a 55pc decrease from 2022. Abu Dhabi Securities Exchange (ADX) saw the highest activity with $4.9bn worth of IPOs, while Dubai Financial Market (DFM) trailed behind with $500 million.
Saudi Arabia’s Tadawul exchange hosted the most IPOs (35) and garnered $3.5bn in proceeds, accounting for 35pc of the region’s total.
Oman’s Muscat Securities Market saw just two IPOs but they raised a respectable $973m, representing 10pc of the GCC total.
Energy companies dominated the landscape, accounting for 36pc of total proceeds despite only having two IPOs.
Transportation followed with $1.72bn raised through 16 IPOs (17pc of total), while industrial and healthcare sectors secured $1.1bn and $985m respectively.
Technology saw just one IPO (Presight AI) raising $496m.
Markaz’s report lists ADNOC Gas, ADES Holding Company, Pure Health, ADNOC Logistics and Services, and OQ Gas Network as the top five GCC IPOs by proceeds in 2023.
The Abu Dhabi National Oil Company’s gas business raised $2.5bn, making it the largest IPO on ADX and constituting 25pc of the region’s total proceeds.
Saudi Arabian ADES Holding Company raised $1.2bn and was the second largest IPO of the year.
UAE-based Pure Health raised $985m, making it the third largest IPO on ADX.
ADNOC Logistics and Services in the UAE raised $771m and was the fourth largest IPO on ADX.
Omani company OQ Gas Network raised $728m, making it the largest IPO in Oman and representing 7.2pc of the region’s total proceeds.
Despite the overall decline in activity, 2023 still saw several notable large-cap IPOs, particularly in the energy and transport sectors.
The continued prominence of these sectors indicates their potential for future growth and investor interest in the GCC markets.
