Markaz: GCC IPOs raise USD 6.8 billion in 9M-2023 marking, with the UAE market leading the region in terms of IPO proceeds

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Kuwait City, 18 Oct: Kuwait Financial Centre “Markaz” released its research report titled “Initial Public Offerings (IPO) in the GCC markets”, which raised total proceeds of USD 6.8 billion through 29 offerings during the first nine months of 2023, marking a year-on-year decline in value by 56% compared to the first nine months of 2022, where issuers raised USD 15.6 billion through 30 offerings.

Geographical Allocation:

Markaz’s report stated that the UAE led the region in terms of IPO proceeds in 9M-2023, raising a total of USD 3.9 billion from 4 offerings and recording a decrease of 63% in value compared to 9M-2022. The UAE led the region in terms of IPO proceeds in the first nine months of 2023 constituting 58% of total GCC IPO proceeds while recording a decrease of 63% in its value compared to the same period of 2022. Listings in Abu Dhabi Securities Exchange (ADX) witnessed the highest proceeds with USD 3.7 billion while listings in Dubai Financial Market (DFM) raised a total of USD 0.2 billion. The Saudi Exchange (Tadawul) witnessed 23 initial public offerings in the stated period of 2023 that generated total proceeds of USD 2.4 billion, constituting 36% of total GCC IPO proceeds. This represents a drop of 46% year-on-year in value when compared to proceeds raised by Saudi IPOs in the first nine months of 2022. Muscat Securities Market (MSM) witnessed 1 IPO with total proceeds of 244 million, constituting 4% of total GCC IPO proceeds raised during the first nine months of 2023.

Top 5 GCC IPOs by Proceeds during 9M-2023:

Markaz’s report highlights the top 5 GCC IPOS by proceeds during 9M-2023. Abu Dhabi National Oil Company gas business, ADNOC Gas, has raised USD 2.5 billion in proceeds marking the largest IPO on ADX and surpassing Borouge, which raised USD 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 36% of total GCC IPO proceeds in the period.

ADNOC Logistics and Services IPO raised a total of USD 771 million in proceeds marking it the second largest IPO on ADX after ADNOC Gas. ADNOC Logistics and Services offered 1.41 billion shares or 19% stake and was covered 163 times. ADNOC Logistics and Services IPO proceeds constituted 11% of total GCC IPO proceeds in the first nine months of 2023.

Presight AI IPO raised a total of USD 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 7% of total GCC IPO proceeds the stated period of 2023.

Jamjoom Pharma raised a total of USD 336 million from the IPO of its products. The company floated 21 million shares, or 30% stake, with a coverage ratio of 67 times. Jamjoom Pharma IPO proceeds constituted 5% of total GCC IPO proceeds in the period of 2023.

Lumi Rental Company raised a total of USD 290 million through offering 16.5 million shares, or 30% of its capital, on Main with demand that covered the offering 11.5 times. Lumi Rental Company’s IPO proceeds constituted 4% of total GCC IPO proceeds in the first nine months of 2023.

GCC IPO Pipeline:

Oman’s OQ Gas Network is planning to float 2 billion shares, or 49% of its share capital, the share sale could raise as much as USD 771 million. Mulkia Investment Company intends to offer 1.3 million shares, or 20% of its capital, on Tadawul in October. Lana Medical Co. issued the prospectus to list 720,000 shares, or 20% of capital, on Nomu-Parallel Market. The offering period for qualified investors will run for five days from Nov. 12-16. The UAE is also expecting 11 IPOs in 2023, raising upwards to $2 billion. The Capital Market Authority in Saudi Arabia approved, on Sept. 27, View Limited Real Estate Development Co.’s request to register and offer 600,000 shares, or 18.18% of its share capital on, Nomu-Parallel Market. The CMA’s approval is valid for six months.

Sources: The information and statistical data herein have been obtained from sources (Bloomberg, Capital IQ, Zawya and daily newspapers) we believe to be reliable but in no way are warranted by us as to its accuracy or completeness. Markaz has no obligation to update, modify or amend this report.

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