KSA Leads IPOs in GCC: KAMCO Invest

Saudi Arabia continued to lead initial public offerings in the GCC region in 2023, with 35 out of the 46 IPOs occurring in the Kingdom. Saudi Arabia’s parallel market, Nomu, witnessed 27 IPOs in 2023, while the Tadawul All Share Index saw eight deals, according to research by KAMCO Invest.

UAE continued its domination in terms of IPO proceeds, raking in almost 56.3% of the issuance proceeds at around US$6.07 billion from its eight listings. According to the report, proceeds from GCC issuers in 2023 dropped by 54% to US$10.79 billion from US$23.38 billion in 2022.

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

The report further noted that the largest IPO from the region was ADNOC Gas, which supplies around 60% of the UAE’s natural gas requirements. The company garnered US$2.48 billion from the sale of 5% of its business via its primary market issuance.

ADES Holding Co., the owner and operator of offshore and onshore rigs from Saudi Arabia, recorded the second-largest IPO from the region with issuance proceeds of US$1.2 billion before listing on the Tadawul Main Market. Pure Health from UAE rounded off the top three IPOs from the GCC, raising US$990 million.

Oman’s MSX contributed to the fourth largest IPO in the region with OQ Gas Network, which raised US$771 million for 49% of its stake. Additionally, Qatar witnessed the IPO of managed IT services and solutions provider MEEZA, which raised $232.67 million from its public offering.

Regarding the prospects for 2024, KAMCO Invest said that issuance proceeds will be dominated by fewer larger issues this year, while several smaller IPOs, such as the Nomu, should debut on the markets.