Energy sector robust despite decline: Gulf IPOs valued at $10.1 billion in 2023

This news has been read 606 times!

KUWAIT CITY, Jan 16: The latest report from the Kuwait Financial Center, titled “Initial Public Offerings in the GCC countries in 2023,” shows the cumulative value of initial IPOs for Gulf stocks amounted to $10.1 billion in 2023 through 45 share offerings. This reflects a 55% decline compared to 2022 when the total value reached $22.7 billion through 46 stock offerings.

According to the report the UAE led the Gulf region in total IPOs in 2023, with seven offerings totaling $5.5 billion, constituting 54.0% of the overall IPO value.

However, this represented a 55.0% decrease from its 2022 value. Among these, five IPOs were presented on the Abu Dhabi Securities Market, totaling $4.9 billion, while the remaining two IPOs took place on the Dubai Financial Market, amounting to $0.5 billion.

The Saudi market experienced the highest number of IPOs in the Gulf Cooperation Council countries, with thirty-five offerings totaling $3.5 billion, representing 35.0% of the total IPO value in 2023.

This also marked a 58.0% decrease from 2022. In Oman, two IPOs were conducted with a total value of $973 million, comprising 10.0% of the Gulf IPOs for the year. The Qatar Stock Exchange witnessed an IPO worth $193 million, contributing 2.0% to the total value of Gulf IPOs in 2023.

Despite only two IPOs in the energy sector, it accounted for approximately 36.6% of the total value of Gulf IPOs in 2023. The transportation sector recorded $1.72 billion through 16 IPOs, making up 17.0% of the total value.

The industrial and healthcare sectors followed with $1.1 billion through two IPOs and $985 million through one IPO, respectively. The technology sector saw one IPO with a total value of $496 million. Other IPOs included companies from capital goods, consumer services, financials, food and beverage sectors, media, and others.

The report shows the top IPOs in terms of value in 2023 were led by Abu Dhabi National Gas Oil Company, reaching $2.5 billion on March 2, constituting 25% of the total Gulf IPO value for the year.

Addis Holding Company secured the second position with an IPO value of $1.2 billion on September 28, representing 12% of the total value. Pure Health’s IPO came in third at $985 million on December 19, ranking as the third-largest on the ADX market after Abu Dhabi National Oil and Gas Company.

ADNOC Logistics and Services Company’s IPO secured the fourth spot, offering 1.41 billion shares, equivalent to 19% of the company’s capital. In fifth place, OQ Gas Networks Company’s IPO in Oman recorded the largest offering in the country in 2023, with a subscription value of $728 million through two billion shares, representing 49% of the capital.

This news has been read 606 times!