UAE IPO boom buoys GCC markets

UAE IPO boom buoys GCC markets

A remarkable surge in companies going public in the UAE rendered a major boost to the GCC markets with 27 IPOs raising a total of $14.5 billion in 2022, reflecting an increasing buoyancy in investor confidence and business optimism.

Year to date, the UAE witnessed the highest offering amount with a total value of $9.7 billion being raised through five IPOs, according to the GCC Equity Primary Offerings report from Markaz.

Market analysts argue that the ongoing IPO boom reflects the new buoyancy across the region following the pent-up opportunities during the pandemic-hit years.

“The IPO wave is emblematic of the bullishness in the investment landscape with the regional economies riding a crest on the back of oil revenue windfall,” they said.

The Dubai Financial Market accounted for 67 per cent of total UAE equity primary offerings for the year with a total of $6.5 billion being raised in proceeds while ADX accounted for 33 per cent with a total of $3.2 billion being raised in proceeds.

Saudi Arabia saw the highest IPO volume, compared to its GCC peers, with 20 IPOs raising $4.5 billion in proceeds.

The UAE witnessed in April this year the largest IPO by value when Dubai Electricity and Water launched the