GCC’s 29 initial public offerings (IPOs) have raised $6.8 billion in the first nine months (9M) of 2023, marking a year-on-year decline in value of 56% compared to 9M of 2022, when issuers raised $15.6 billion through 30 offerings.

 

The UAE led the region in terms of IPO proceeds in 9M-2023, raising a total of $3.9 billion from 4 offerings and recording a decrease of 63% in value compared to 9M-2022, said Kuwait Financial Centre (Markaz) in its research report titled ‘Initial Public Offerings (IPO) in the GCC markets’.

 

The UAE’s IPO proceeds in 9M 2023 constituted 58% of total GCC IPO proceeds, but recording a decrease of 63% in its value compared to the same period of 2022. 

 

Highest proceeds

Listings on Abu Dhabi Securities Exchange (ADX) witnessed the highest proceeds with $3.7 billion while listings on Dubai Financial Market (DFM) raised a total of $0.2 billion. 

 

The Saudi Exchange (Tadawul) witnessed 23 initial public offerings in 9M 2023 generating total proceeds of $2.4 billion, constituting 36% of total GCC IPO proceeds. This represents a drop of 46% year-on-year in value when compared to proceeds by Saudi IPOs in 9M 2022. 

 

Muscat Securities Market (MSM) witnessed 1 IPO with total proceeds of $244 million, constituting 4% of total GCC IPO proceeds raised during the first nine months of 2023.

 

Top 5 GCC IPOs by proceeds during 9M 2023

Markaz’s report highlights the top 5 GCC IPOS by proceeds during 9M 2023. Abu Dhabi National Oil Company gas business, Adnoc Gas, has raised $2.5 billion in proceeds marking the largest IPO on ADX and surpassing Borouge, which raised $2.0 billion in June 2022. Adnoc Gas offered 3.84 billion shares, or 5% stake, which was covered more than 50 times. Adnoc Gas IPO proceeds constituted 36% of total GCC IPO proceeds in the period.

 

Adnoc Logistics and Services IPO raised a total of $771 million in proceeds marking it the second largest IPO on ADX after Adnoc Gas. Adnoc Logistics and Services offered 1.41 billion shares or 19% stake and was covered 163 times. Adnoc Logistics and Services IPO proceeds constituted 11% of total GCC IPO proceeds in the first nine months of 2023.

 

Presight AI IPO raised a total of $496 million in proceeds through the sale of 1.35 billion shares, or 32% stake, with total demand of investors which reached 136 times. Presight IPO constituted 7% of total GCC IPO proceeds the stated period of 2023.

 

Jamjoom Pharma raised a total of $336 million from the IPO of its products. The company floated 21 million shares, or 30% stake, with a coverage ratio of 67 times. Jamjoom Pharma IPO proceeds constituted 5% of total GCC IPO proceeds in the period of 2023.

 

Lumi Rental Company raised a total of $290 million through offering 16.5 million shares, or 30% of its capital, on Main with demand that covered the offering 11.5 times. Lumi Rental Company’s IPO proceeds constituted 4% of total GCC IPO proceeds in the first nine months of 2023.

 

GCC IPO pipeline

Oman’s OQ Gas Network is planning to float 2 billion shares, or 49% of its share capital, the share sale could raise as much as $771 million. Mulkia Investment Company intends to offer 1.3 million shares, or 20% of its capital, on Tadawul in October. 

 

Lana Medical Co issued the prospectus to list 720,000 shares, or 20% of capital, on Nomu-Parallel Market. The offering period for qualified investors will run for five days from November 12 to 16. 

 

The UAE is also expecting 11 IPOs in 2023, raising upwards to $2 billion. 

 

The Capital Market Authority in Saudi Arabia approved, on September 27, View Limited Real Estate Development Co’s request to register and offer 600,000 shares, or 18.18% of its share capital on, Nomu-Parallel Market. The CMA's approval is valid for six months.--TradeArabia News Service