Kuwait Financial Centre “Markaz” released its research report, “Initial Public Offerings (IPOs) in the GCC markets,” showcasing a 55% annual decline in total proceeds from $22.7bn in 2022 to $10.1bn in 2023. The decrease stemmed from fewer offerings (45 vs. 46) and lower average deal sizes.
UAE Dominates, But Sees Significant Downturn
The United Arab Emirates remained the regional leader, raising $5.5bn from seven IPOs, contributing 54% of the GCC total. However, this represented a 55% drop from the UAE’s 2022 performance. Abu Dhabi Securities Exchange (ADX) took the lion’s share with $4.9bn, while Dubai Financial Market (DFM) contributed $0.5bn.
Saudi Arabia Remains Active, Oman Shines
Saudi Arabia’s Tadawul exchange saw the highest number of IPOs (35) and raised $3.5bn, accounting for 35% of the GCC total. Muscat Securities Market (MSM) had two IPOs raising $973m (10% of the GCC total), including the largest Omani IPO of the year: OQ Gas Network ($728m). Qatar had only one IPO, contributing $193m (2%).
Energy Leads Sector Performance, Technology Makes a Single Appearance
While only two energy sector IPOs occurred, they collectively captured nearly 36% of total proceeds. Transportation followed with $1.72bn raised across 16 IPOs (17% of total). Industrial and healthcare sectors trailed with $1.1bn and $985m raised, respectively. Tech saw just one IPO: Presight AI ($496m).
Top 5 GCC IPOs by Proceeds (2023):
- ADNOC Gas (ADX): $2.5bn (25% of GCC total)
- ADES Holding Company (Tadawul): $1.2bn (12% of GCC total)
- Pure Health (ADX): $985m (9.7% of GCC total)
- ADNOC Logistics and Services (ADX): $771m (7.6% of GCC total)
- OQ Gas Network (MSM): $728m (7.2% of GCC total)
Markaz’s report highlights the continued significance of GCC IPOs, despite the 2023 downturn. The UAE’s dominant position remains, while Saudi Arabia and Oman see encouraging IPO activity. Sector diversification is evident, with energy still leading the pack.
