Title: Saudi Arabia Leads IPOs in the GCC Region in 2023: KAMCO Invest Report
RIYADH: Saudi Arabia maintained its prominent position in the Gulf Cooperation Council (GCC) region by spearheading 35 out of the 46 initial public offerings (IPOs) in 2023, as per research conducted by KAMCO Invest.
In 2023, Saudi Arabia’s parallel market, Nomu, witnessed 27 IPOs, while the Tadawul All Share Index saw eight deals, according to the KAMCO Invest report.
The United Arab Emirates (UAE) continued its IPO dominance in terms of proceeds, securing nearly 56.3 percent of the issuance proceeds at approximately $6.07 billion from its eight listings.
The report highlighted a significant drop in proceeds from GCC issuers in 2023, decreasing by 54 percent to $10.79 billion from the previous year’s $23.38 billion. KAMCO Invest noted that while the issuance numbers were driven by smaller-ticket IPOs, larger names experienced positive post-listing performances.
The largest IPO in the region, according to the report, was from ADNOC Gas, which supplies around 60 percent of the UAE’s natural gas requirements. The company raised $2.48 billion by selling five percent of its business through its primary market issuance.
ADES Holding Co., a Saudi-based owner and operator of offshore and onshore rigs, recorded the second-largest IPO in the region, with issuance proceeds totaling $1.2 billion before listing on the Tadawul Main Market.
Pure Health from the UAE secured the third position in the top IPOs from the GCC, raising $990 million.
Oman’s MSX contributed to the fourth-largest IPO in the region with OQ Gas Network, raising $771 million for 49 percent of its stake.
Additionally, Qatar witnessed the IPO of managed IT services and solutions provider MEEZA, which raised $232.67 million from its public offering.
Looking ahead to 2024, KAMCO Invest predicts that issuance proceeds will be dominated by fewer, larger issues, while several smaller IPOs, such as those on Nomu, are expected to debut on the markets.