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Saudi Arabia maintains IPO leadership in GCC region: Report

The report outlines that the largest IPO from the region was ADNOC Gas.

Saudi Arabia maintains IPO leadership in GCC region: Report
[Source photo: Anvita Gupta/Fast Company Middle East]

In 2023, Saudi Arabia continued to lead initial public offerings (IPOs) across the GCC region, accounting for 35 out of the 46 IPOs in the kingdom.

The parallel equity market in the Gulf state, Nomu, experienced 27 IPOs in 2023. In contrast, the Tadawul All Share Index recorded eight deals, according to research by KAMCO Invest.

Meanwhile, the UAE maintained its leadership in IPO proceeds, securing almost 56.3% of the issuance proceeds, totaling around $6.07 billion from its eight listings.

The report further indicates that proceeds from GCC issuers saw a decline in 2023, dropping by 54% to $10.79 billion from $23.38 billion in 2022.

“Although issuance numbers were driven by smaller-ticket IPOs, post-listing performance from larger names was largely positive,” noted KAMCO Invest. 

“Solid performances from larger stocks were backed by clear signaling and IPO pitches from companies and investment bankers about either growth prospects which drove solid price appreciation or strong dividend yields,” it added. 

The report also highlighted that the largest IPO in the region was from ADNOC Gas, generating $2.48 billion through the sale of five percent of its business. The second-largest IPO in the region was by ADES Holding Co., a Saudi Arabian company that owns and operates offshore and onshore rigs, recording issuance proceeds of $1.2 billion before listing on the Tadawul Main Market.

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