RIYADH: Stock markets across the Gulf Cooperation Council raised $3.5 billion through 12 initial public offerings during the first quarter of 2023, with the UAE responsible for 91 percent of the total amount.
Abu Dhabi Securities Exchange recorded an increase of 192 percent in value compared to the same quarter of the previous year as it raised $3.2 billion from just three offerings, according to a report issued by the Kuwait Financial Center, also known as Markaz.
Some $3 billion came through the IPOs of ADNOC Gas and Presight AI, while Dubai-listed Al Ansari Financial Services raised $200 million.
The report showed that following a flurry of IPOs in 2022, the Gulf region witnessed a 25 percent slump in the first quarter of the current year compared to the same period last year, when $4.6 billion was raised through 13 offerings.
Muscat Securities Market in Oman saw an IPO totaling $244 million, representing 7 percent of the total GCC IPO proceeds raised in the first quarter of 2023.
Furthermore, eight IPOs were held at the Saudi Stock Exchange, also known as Tadawul, generating $72 million, or 2 percent of the total IPO proceeds in the Gulf region.
However, Tadawul received 100 applications until mid-February 2023, and 23 firms obtained final approval for listing.
This includes Saudi Arabia’s First Mills Co., which plans to float 16.65 million shares, or 30 percent of its share capital, in an IPO that could value the company at as much as $1 billion.
Al-Mawarid Manpower Co. intends to offer 4.5 million shares, or 30 percent of its capital, on Tadawul in May.
Meanwhile, Lumi Rental Co. obtained approval from the Capital Market Authority to offer and list 16.5 million shares, or 30 percent of its share capital, on the Saudi exchange.
The Markaz report added that 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 also preparing for a public share sale that could take place in June. and could raise more than $500 million, the report stated.
