GCC initial public offerings (IPOs) raised a total of $3.5 billion through 12 offerings in Q1 2023, marking a y-o-y decline in value of 25%, as UAE led the region raising $3.2 billion from 3 offerings, a steep increase of 192%.

In Q1 2022 GCC IPOs had raised $4.6 billion through 13 offerings, said Kuwait Financial Centre (Markaz) in its research report titled ‘Initial Public Offerings (IPO) in the GCC markets’.

Markaz’s report stated that the UAE offerings constituted 91% of total GCC IPO proceeds in Q1-2023. Abu Dhabi Securities Exchange (ADX) witnessed the highest proceeds with $3.0 billion through the offerings of Adnoc Gas and Presight AI.

UAE offerings

UAE offerings that were listed on the Dubai Financial Market (DFM) raised a total of $0.2 billion from one IPO, which is Al Ansari Financial Services. Muscat Securities Market (MSM) witnessed 1 IPO with total proceeds of $244 million, constituting 7% of total GCC IPO proceeds raised during the first three months of 2023.

The Saudi Exchange (Tadawul) witnessed 8 initial public offerings in Q1-2023 that generated total proceeds of $72 million, constituting 2% of total GCC IPO proceeds. This represents a drop of 98% year-on-year in value when compared to proceeds raised by Saudi IPOs in Q1-2022.

Top 5 GCC IPOs by proceeds

Markaz’s report highlights the top 5 GCC IPOS by proceeds during Q1-2023. 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 71% of total GCC IPO proceeds in Q1-2023.

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 14% of total GCC IPO proceeds during Q1-2023.

Oman's largest listing

Oman’s state energy company OQ raised a total of $244 million from the IPO of its oil-drilling unit, Abraj Energy Services, pulling off Muscat’s largest listing in more than a decade. The company floated 377.4 million shares, or 49% stake, with a coverage ratio of 8.7 times. Abraj Energy Services IPO proceeds constituted 7% of total GCC IPO proceeds in Q1-2023.

UAE-based exchange house Al Ansari Financial Services raised a total of $210 million in its IPO which offered 750 million shares, or 10% stake, with a coverage ratio of 44 times. Al Ansari Financial Services IPO proceeds constituted 6% of total GCC IPO proceeds in Q1-2023.

Ghida Al-Sultan for Fast Food Company raised a total of $14.3 million through offering 640 thousand shares, or 20% of its capital, on Nomu with demand that covered the offering 1.1 times. Ghida Al-Sultan IPO proceeds constituted 0.4% of total GCC IPO proceeds in Q1-2023.

GCC IPO pipeline

Tadawul received 100 listing applications until mid-February 2023 and 23 firms obtained final approval for listing. Saudi Arabia’s First Mills Company is planning to float 16.65 million shares, or 30% of its share capital, in an IPO that could value the company at as much as $1 billion.

Al Mawarid Manpower Company intends to offer 4.5 million shares, or 30% of its capital, on Tadawul in May. Lumi Rental Company obtained CMA approval to offer and list 16.5 million shares, or 30% of its share capital, on Tadawul.

The UAE is also expecting 11 IPOs in 2023 with Adnoc planning to float its marine and logistics subsidiary in the coming months. Oman’s OQ Gas Network is preparing for a public share sale that could take place as early as June. OQ could raise more than $500 million.

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