The currency exchange business Al Ansari Exchange completed its IPO on DFM in April this year. Whilst Dubai did not have any listing in Q1 2023, the first listing on DFM for the year has already taken place at the time of writing. ADNOC Gas Plc marks the third subsidiary listing by the ADNOC Group, following the IPOs off ADNOC Drilling and ADNOC Distribution that completed in 20 respectively. The offering was 50 times oversubscribed with a total demand value of USD 124 billion. This IPO marked the biggest IPO within the GCC and globally for the quarter and became the largest ever IPO on ADX to date, breaking the record set by Borouge in Q2 2022. The IPO of ADNOC Gas PLC on ADX generated USD 2.5 billion in proceeds. The UAE had 2 IPOs raising USD 3.0 billion, both listed on Abu Dhabi stock exchange (“ADX”), making the country ranked 2nd by proceeds globally in Q1 2023. The government of Dubai has also launched the D33 Economic Agenda this quarter to capitalize on the current favorable economic landscape with the aim of doubling the size of Dubai’s economy in the next decade which is likely to lead to additional capital raising activities. Q1 2023 GCC IPO markets experienced significant level of activity as initiatives developed by various countries in the region to stimulate IPO activities are yielding results. Nasdaq Dubai attracted a number of corporate and sovereign bonds and sukuk, some of which offer floating rates. With the range of ongoing government incentives (for instance, 6 of Dubai’s planned state-owned listings, as announced in November 2021, are yet to take place, and the USD 1.4 billion Abu Dhabi IPO fund has also shortlisted a number of private companies as candidates for potential IPOs) further helped by foreign investors whose investment options in their respective home market are reduced due to the lack of IPOs in regions outside of the Middle East, we expect the IPO pipeline to remain strong in the near future.ĭebt activity had mostly been centered in the UAE in Q1 2023. Oman played host to the remaining IPO - the listing of Abraj Energy Services generated proceeds of USD 244 million. The Kingdom of Saudi Arabia dominated in terms of volume with its 6 IPOs in the quarter generating USD 71 million in proceeds, representing 2% of GCC’s total Q1 2023 proceeds. The IPO of ADNOC Gas Plc represented the biggest listing of Q1 2023 and generated more proceeds compared to the four UAE IPOs in Q4 2022 combined. The UAE market had been particularly active, accounting for over 90% of the GCC IPO proceeds (USD 3.0 billion) from its two IPOs. Whilst this represents a 34% and 54% decrease in proceeds respectively, it is worth noting that the volume of IPOs in these two quarters were the highest ever and were significantly higher than the past average. USD 3.3 billion in proceeds were generated from 9 IPOs in Q1 2023, compared to USD 4.9 billion from 15 IPOs in Q1 2022 and USD 7.2 billion from 15 IPOs in Q4 2022. Against a background of diminishing activities in global capital markets since 2022, the GCC region has carried on strongly in Q1 2023 with a significant amount of IPO activity, generating the second highest Q1 proceeds since 2015.
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