Kuwait Business: Potential risks could mar IPO activity in 2022: Kamco – Gulf Digital News

Kuwait Business: Potential risks could mar IPO activity in 2022: Kamco – Gulf Digital News

A number of potential risks do appear in 2022, that could impact IPO activity within the region, after a stellar 2021 performance which saw 20 IPOs in the GCC, shooting up from 7 issuance in 2020. 

However, a strong pipeline, steady market valuations and regulator support are enough catalysts to keep GCC IPO market activity strong in 2022, as per an analysis by Kamco Invest, a premier investment company based in Kuwait. Kamco expects Saudi and UAE (DFM & ADX) stock exchanges to continue to lead the region in terms of issuances.

IPO pipelines remain strong from both corporates and potential listings of state-owned assets. 

Saudi Arabia's stock exchange reportedly has 50 applications for IPOs in 2022, while Dubai announced the listing of 10 government and state-owned companies for the year. Regulators are also considering different vehicles such as SPACs and market maker funds to improve liquidity and participation within their respective stock markets. 

Meanwhile, after remaining active in 2020, GCC IPO issuances had a standout year in 2021, supported by secondary market valuations, and global cues in terms of performance and liquidity. 

Proceeds for 2021 from GCC issuers jumped almost 4.6x to $7.52 billion from $1.64 billion