GCC IPOs raise $10.1bln through 45 offerings in 2023, says report

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The GCC region has raised a total of $10.1 billion in Initial Public Offerings (IPO) proceeds through 45 offerings during FY 2023, thus marking a year-on-year decline of 55% by value compared to the previous year, where issuers raised $22.7 billion through 46 offerings, according to Kuwait Financial Centre (Markaz).

Releasing its research report titled 'IPO in the GCC markets for 2023,' Markaz said regionwise, the UAE emerged on top raising a total of $5.5 billion from 7 offerings constituted 54% of total GCC IPO proceeds.

However, this constituted a decrease of 55% in the value of UAE IPOs compared to the year 2022. Abu Dhabi Securities Exchange (ADX) witnessed the highest proceeds in the UAE with $4.9 billion followed by offerings that were listed on the Dubai Financial Market (DFM) which raised a total of $0.5 billion.

In Saudi Exchange (Tadawul) IPO proceeds was $3.5 billion during the year with 35 offerings recording the highest number of IPOs in the GCC during FY 2023 and 35% of total GCC IPO proceeds.

Muscat Securities Market (MSM) witnessed two IPOs with total proceeds of $973 million, constituting 10.0% of total GCC IPO proceeds raised during 2023. Qatar had one IPO that raised a total of $193 million and constituted 2.0% of the total GCC IPO proceeds in 2023.

Markaz said although, there were only 2 IPOs of companies from the energy sector, it accounted for nearly 36% of the total proceeds during the year.

Companies in the transportation sector raised $1.72 billion through 16 IPOs, constituting 17% of total GCC IPO proceeds raised during 2023.

This was followed by IPOs from the industrial and healthcare sectors that raised $1.1 billion (2 IPOs) and $.985 billion (IPO) respectively. There was only one IPO from the technology sector (Presight AI company) with an offered size of $496 million.

Other IPOs primarily include companies from the capital goods, consumer services, financials, F&B and Media sector among others.

Top 5 GCC IPOs by Proceeds during 2023:

Markaz’s report highlights the top 5 GCC IPOS by proceeds in 2023. Abu Dhabi National Oil Company gas business, Adnoc Gas, raised $2.5 billion in proceeds marking the largest IPO on ADX in March 2.

Adnoc Gas offered 3.84 billion shares, or 5% stake, which was covered more than 50 times. Adnoc Gas IPO proceeds constituted 25% of total GCC IPO proceeds in the period.

ADES Holding Company IPO raised a total of $1.2 billion in proceeds on September 28 making it the second largest IPO in 2023. ADES Holding Company was listed on Tadawul in the Main Market and offered 338 million shares. The company was covered 9.8 times and the proceeds constituted 12% of total GCC IPO proceeds in 2023.

Pure Health IPO raised a total of $985 million in proceeds on December 19 marking it the third largest IPO on ADX after ADNOC Gas. Pure Health offered 1.11 billion shares or 10% stake. Pure Health IPO proceeds constituted 9.7% of total GCC IPO proceeds in 2023.-TradeArabia News Service