The Gulf Cooperation Council (GCC) has witnessed a significant 56% year-on-year decline in initial public offerings (IPOs) proceeds for the first nine months of 2023, according to a report by Kuwait Financial Centre (Markaz). The total funds raised through 29 IPOs amounted to $6.8 billion, compared to a much higher figure in the previous year.
The United Arab Emirates (UAE) led the GCC IPO market with four offerings that generated $3.9 billion, accounting for 58% of the total GCC proceeds. However, this marks a 63% decrease from last year's numbers. 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 main exchange, Tadawul, saw 23 IPOs, generating $2.4 billion, a 46% decrease from 2022. Meanwhile, Muscat Securities Market (MSM) had one IPO that raised $244 million.
The top five GCC IPOs were led by Adnoc Gas with $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).
Looking ahead, Oman’s OQ Gas Network and Mulkia Investment Company are planning IPOs that could raise up to $771 million and offer 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.
Despite the downturn in IPO activity this year, 11 more IPOs are expected in the UAE in 2023. Markaz, a leading asset management and investment banking institution in the Middle East and North Africa region, is listed on Boursa Kuwait.
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