The Renaissance of IPOs in the GCC obscures the reality that only one-third of listed companies succeed in the short, medium and long term.

The Renaissance of IPOs in the GCC obscures the reality that only one-third of listed companies succeed in the short, medium and long term.

: With 38 GCC market debuts, 2021 was the best year for new listings since 2007. Yet, the high volume of listings disguises the reality that only one-third are successful. Specifically, just 38% of IPOs were priced adequately - the majority of companies leave too much money on the table. Only 32% of companies traded within the typically desired share price range of 20% within the first 30 days of going public. And merely 31% of new listings outperform companies that are already listed in the longer term.

 

These are among the findings of a new report published by Iridium Advisors, entitled “The Renaissance of IPOs in the GCC,” that examines the success rate of company listing and demystifies some common misconceptions about IPO winners and losers. Iridium’s analysis of 457 initial public offerings in the GCC region between 2005 and 2021, benchmarked companies against three objective criteria of success: