GCC IPOs declined marginally to 46 issuances in 2023

GCC IPOs declined marginally to 46 issuances in 2023

Muscat: The total number of IPOs in the GCC declined marginally to 46 issuances in 2023 from 48 issuances in 2022, according to a new report.

“Although issuance numbers were driven by smaller-ticket initial public offerings (IPOs), post-listing performance from larger names was largely positive,” Kamco Invest said in its latest report titled 'GCC IPOs: 2023 - The Year That Was... January-2024.'

Solid performances from larger stocks were backed by clear signalling and IPO pitches from companies and investment bankers about either growth prospects which drove solid price appreciation or strong dividend yields (5 percent to 6 percent). “Dividend yields from recurring revenue generating and utility companies were sought after by investors, as many of these names also included state-owned enterprises previously, as governments in the region divested their stakes to push ahead with their diversification plans,” the report added.

Saudi Arabia continued its leadership position for IPO issuances from the region in 2023, as 35 out of the 46 GCC IPOs debuted on either the Nomu or Tadawul. Within Saudi Arabia, the Nomu–Parallel market dominated the number of issuances with 27 deals, as compared to 8 deals for the Main Market. The UAE continued its domination in terms of IPO proceeds raking