The value of initial public offerings (IPOs) in the GCC for the first nine months of 2023 has dropped by 56% year-on-year when compared to the same period in 2022.
According to research from Kuwait-based asset manager Markaz, 29 IPOs in the region raised US$6.8 billion in that time. In contrast, a similar number of IPOs (30) raised more than twice the amount in the previous year ($15.6 billion).
In terms of a regional breakdown, the UAE led the way with $3.9 billion raised from four stock offerings.
And while this accounted for 58% of the GCC’s total proceeds for the nine months, it still amounted to a 63% decrease in value from 2022.
The largest single deal involved Adnoc Gas, a division of the Abu Dhabi National Oil Company, which raised $2 billion, making it the most valuable ever IPO on the Abu Dhabi Exchange and accounting for more than a third (36%) of the region’s total IPO proceeds for the year so far.
It remains to be seen if the GCC will be able to arrest the decline in the final months of the year or beyond, although the Markaz report does state the UAE alone is expecting 11 IPOs to raise upwards of $2 billion.
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