GCC stock markets raise USD 5.3 billion in IPOs during H1 2023

Kuwait Financial Centre “Markaz” released its research report titled “Initial Public Offerings (IPO) in the GCC markets”, stating that the region raised a total of USD 5.3 billion in proceeds through 21 offerings during the first half of 2023, marking a year-on-year decline in value by 61% compared to the first half of 2022, when GCC issuers raised a total of USD 13.6 billion through 21 offerings.
Geographical Allocation: 
Markaz’s report stated that the UAE led the region in terms of IPO proceeds raising a total of USD 4.0 billion from 4 offerings, constituting 75% of the total proceeds raised during the period. Abu Dhabi Securities Exchange (ADX) witnessed the highest proceeds with USD 3.7 billion through the offerings of ADNOC Gas, ADNOC Logistics and Presight AI while Dubai Financial Market (DFM) raised a total of USD 210 million from Al Ansari Financial Services IPO. This marked a drop of 57% year-on-year in value of UAE IPO proceeds compared to H1-2022. The Saudi Exchange (Tadawul) witnessed 15 initial public offerings in H1-2023 generating total proceeds of USD 0.9 billion and constituting 17% of total GCC IPO proceeds. Saudi IPOs marked a drop of 78% year-on-year in value when compared to proceeds raised in H1-2022. Muscat Securities Market (MSM) witnessed 1 IPO with total proceeds of USD 244 million, constituting 5% of total proceeds raised during the period. Qatar Stock Exchange (QSE) hosted 1 IPO with total proceeds of USD 193 million, constituting 4% of the total IPO proceeds in GCC during H1-2023.
Top 5 GCC IPOs by Proceeds during H1-2023:
Markaz’s report highlights the top 5 GCC IPOs by proceeds during H1-2023: Abu Dhabi National Oil Company gas business, ADNOC Gas, has raised USD 2.5 billion in proceeds marking the largest IPO on ADX and surpassing Borouge, which raised USD 2.0 billion in June 2022. ADNOC Gas offered 3.84 billion shares, or 5% stake, which was covered more than 50 times. ADNOC Gas IPO proceeds constituted 47% of total GCC IPO proceeds in H1-2023. ADNOC Logistics & Services raised a total of USD 772 million in its IPO on ADX which offered 1.41 billion shares, or 19% stake, that was covered 163 times. ADNOC L&S IPO proceeds constituted 15% of the total GCC IPO proceeds during the period.  Presight AI IPO raised a total of USD 496 million in proceeds through the sale of 1.35 billion shares, or 32% stake, on ADX with total demand of investors which reached 136 times. Presight IPO constituted 9% of total GCC IPO proceeds during the period. Jamjoom Pharma raised a total of USD 336 million in its IPO on Tadawul. Jamjoom offered 21.0 million shares, or 30% stake, which was covered 67 times. The proceeds of the IPO constituted 6% of the total value raised by GCC IPOs. First Mills Company IPO raised a total of USD 266 million in proceeds. The company floated 16.6 million shares, or 30% stake, on Tadawul with a coverage ratio of 69 times. First Mills IPO proceeds constituted 5% of total GCC IPO proceeds in H1-2023.
GCC IPO Pipeline: 
MBC Group is said to be planning to meet investors for its IPO in the Saudi market and working with HSBC Holdings Plc and JPMorgan Chase & Co. on the planned share sale. Professional Medical Expertise Company has set the share offering price range for its IPO on Tadawul at SAR 63-68. The company plans to float 1.05 million ordinary shares, or 30% of the issued capital, on Nomu-Parallel Market. The book-building process for qualified investors will run between July 9-16. Marble Design Company intends to float 600,000 shares, or 10% of its SAR 60 million capital, on Nomu-Parallel Market. The book-building process for qualified investors will run from July 23-27. Investcorp Holdings, a Bahrain-based alternative asset manager, is planning a $600 million IPO of its investment vehicle Investcorp Capital in Abu Dhabi as soon as September. Amanat Holdings, a Dubai-based healthcare and education investment firm, confirmed it is assessing monetization options for its healthcare platform, including a possible regional IPO in the near term.