The number of initial public offerings (IPOs) in the GCC more than doubled in 2022 compared to the previous year while the value from these flotations increased threefold during the same period.
IPO issuance went from 20 in 2021 to 48 in 2022, according to analysis from asset manager Kamco Invest.
Meanwhile, the proceeds from the issuances went from $7.52 billion in 2021 to $23.38 billion, according to data from Bloomberg and stock exchanges.
The vast majority of IPOs (34 of the 48) were issued in Saudi Arabia. However, the UAE accounted for more than half (59.7%) of the proceeds, bringing in $13.96 billion.
The two largest IPOs in the region were also registered in the UAE – DEWA’s $6.1 billion flotation on the Dubai Financial Market and Bororgue’s $2 billion IPO on the Abu Dhabi Exchange.
The growth in the GCC is in contrast to the global IPO market, which dropped by 45% in 2022 after a stellar year in 2021.
Kamco Invest is forecasting another positive year in 2023 for the GCC’s IPO market.
“While we expect the trajectory of interest rate hikes, geopolitics, secondary stock market volatility and oil price volatility to continue to remain risks in 2023, it is worth noting that the prevalence of these factors did not stop strong IPO activity in 2022,” stated the firm.
“Further, the GCC will continue to generate interest for its strong idiosyncratic businesses and family office listings from international investors, given their strong competitive positioning and established reach in the market, in our view.”
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