The UAE led the Gulf Cooperation Council (GCC) in IPO proceeds, securing $5.5 billion from seven flotations in 2023, according to Kuwait Financial Centre (Markaz).

Despite making 54% of the total GCC IPO proceeds, the figure represents a 55% fall in value compared to 2022, the consultancy said in a report titled “Initial Public Offerings in the GCC markets”.

The overall IPO proceeds across the GCC countries dropped 55% to $10.1 billion in 2023 from $22.7 billion in 2022.

Last year saw 45 offerings on the GCC bourses compared to 46 in 2022.

Abu Dhabi Securities Exchange (ADX) emerged as the leader in IPO proceeds with $4.9 billion, followed by the Dubai Financial Market (DFM) at $0.5 billion.

The Saudi Exchange (Tadawul) recorded $3.5 billion in IPO proceeds, recording the highest number of IPOs in the GCC in 2023 and contributing 35% to the total GCC proceeds.

Muscat Securities Market witnessed two IPOs with total proceeds of $973 million, constituting 10% of total GCC IPO proceeds. Qatar raised $193 million from one IPO, representing 2% of the total GCC IPO proceeds.

While the energy sector saw only two IPOs, they accounted for nearly 36% of the total proceeds. Companies in the transportation sector raised $1.72 billion through 16 IPOs, followed by IPOs from the industrial (two) and healthcare (one) sectors, which raised $1.1 billion and USD .985 billion, respectively.  

In terms of value, ADNOC Gas topped the list of IPOs, raising $2.5 billion, followed by ADES Holding Company ($1.2 billion) and Pure Health ($985 million), the report said.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)