The latest report from the Kuwait Financial Center “Markaz” titled “Initial Public Offerings in the Gulf for the Year 2023” reveals that the total value of initial public offerings (IPOs) for Gulf stocks reached $10.1 billion in 2023, a 55% decrease from the $22.7 billion recorded in 2022, encompassing 45 stock offerings, compared to 46 subscriptions in the previous year.
The report highlights the United Arab Emirates (UAE) as the leader in total IPOs in the Gulf region for 2023, with seven offerings totaling $5.5 billion, representing 54% of the total value. However, this figure reflects a 55% decrease from the previous year’s value. The Abu Dhabi Securities Market hosted five IPOs worth $4.9 billion, while the Dubai Financial Market saw the sixth and seventh IPOs with a total value of $0.5 billion, reports Al-Anba daily.
Saudi Arabia recorded the largest number of IPOs in the Gulf with 35 offerings, totaling $3.5 billion, constituting 35% of the total value in 2023. This marked a 58.0% decrease from the previous year. The Sultanate of Oman witnessed two IPOs valued at $973 million, representing 10% of the total Gulf IPO value. The Qatar Stock Exchange also had an IPO worth $193 million, constituting 2.0% of the total for 2023.
Despite only two IPOs in the energy sector, it represented about 36.6% of the total value of Gulf IPOs in 2023. The transportation sector contributed $1.72 billion through 16 IPOs (17.0% of total subscriptions). The industrial and healthcare sectors recorded a combined total of $1.1 billion through two IPOs and $985 million through one IPO, respectively. Additionally, the technology sector had one IPO with a total value of $496 million.
The report highlighted the top IPOs by value in 2023. The largest IPO was for shares of the Abu Dhabi National Gas Oil Company, reaching $2.5 billion, constituting 25% of the total Gulf IPO value for the year. Addis Holding Company followed with an IPO of $1.2 billion (12% of the total value), and Pure Health came in third with a $985 million IPO (9.7% of the total value). Other notable IPOs included ADNOC Logistics and Services Company and OQ Gas Networks Company in Oman, ranking fourth and fifth, respectively.
