IPOs in the Gulf experienced a 55% decline last year, as indicated by data from Kuwait Financial Centre “Markaz.”
In a report entitled “Initial Public Offerings in the GCC markets,” Markaz revealed that in 2023, initial public offerings (IPOs) in the Gulf Cooperation Council Countries (GCC) generated a total of $10.1bn through 45 offerings.
This amount signifies a year-on-year drop of 55% in value compared to the preceding year, when issuers raised $22.7B through 46 offerings.
Gulf IPO activity:
According to Markaz’s report, the UAE took the lead in terms of IPO proceeds in 2023, amassing a total of $5.5B from seven offerings, constituting 54% of the total GCC initial public offering proceeds.
However, this marked a 55% decrease in the value of UAE initial public offerings compared to 2022.
- Abu Dhabi Securities Exchange: $4.9B
- Saudi Exchange (Tadawul): $3.5B,
- Muscat Securities Market (MSM): $973M
- Dubai Financial Market: $500M
- Qatar: $193
Despite only two initial public offerings from the energy sector, it contributed nearly 36% of the total proceeds during the year.
Companies in the transportation sector raised $1.72B through 16 IPOs, comprising 17% of the total GCC initial public offering proceeds in 2023.
This was followed by IPOs from the industrial and healthcare sectors, raising $1.1B (two) and $985M (one) respectively.
There was only one initial public offering from the technology sector (Presight AI company) with an offered size of $496M.
Other initial public offerings primarily encompassed companies from the capital goods, consumer services, financials, F&B, and media sectors, among others, according to Arabian Business.
Top 5 GCC IPOs in 2023
The gas business of the Abu Dhabi National Oil Company, ADNOC Gas, garnered proceeds of $2.5B, marking the most substantial IPO on ADX on March 2. ADNOC Gas offered 3.84 billion shares, equivalent to a 5 per cent stake, with oversubscription exceeding 50 times. The proceeds from the ADNOC Gas IPO accounted for 25 per cent of the total GCC initial public offering proceeds during that period.
ADES Holding Company’s IPO raised a total of $1.2B on September 28, positioning it as the second-largest IPO in 2023. Listed on Tadawul in the Main Market, ADES Holding Company offered 338 million shares, oversubscribed at 9.8 times. The proceeds constituted 12 per cent of the total GCC initial public offering proceeds in 2023.
The initial public offering of Pure Health secured $985m in proceeds on December 19, making it the third-largest IPO on ADX after ADNOC Gas. Pure Health offered 1.11 billion shares, representing a 10 per cent stake. The proceeds from the Pure Health IPO constituted 9.7 per cent of the total GCC initial public offering proceeds in 2023.
ADNOC Logistics and Services’ initial public offering amassed $771m in proceeds on May 25, positioning it as the fourth-largest IPO on ADX. ADNOC Logistics and Services offered 1.41 billion shares, equivalent to a 19 per cent stake, and received oversubscription 163 times. The proceeds from this IPO constituted 7.6 per cent of the total GCC initial public offering proceeds in 2023.
OQ Gas Network, the largest initial public offering in Oman in 2023, raised a total of $728M on October 9 through the sale of 2 billion shares, representing a 49 per cent stake. The total demand from investors reached 13.9 times. The OQ Gas Network IPO constituted 7.2 per cent of the total GCC initial public offering proceeds in 2023.
