Saudi Aramco, high-value IPOs face impending pressure in 2023

Saudi Aramco, high-value IPOs face impending pressure in 2023

DUBAI — Saudi Aramco and other regional companies delayed listing their initial public offerings this week in a trend that reflects the growing impact of the regional and global, economic slowdown that began in 2023.

The first quarter of this calendar year saw a 33% drop in volume of IPO listings in the Middle East and North Africa, and a 14% decrease in value compared to the same quarter in 2022, according to global professional service network Ernst & Young.

Economic downturn is expected to continue throughout 2023 in a trend experts believe exposes MENA to external shocks that could further exacerbate economic hardships.

Still, Ernst & Young MENA Strategy and Transactions Leader Brad Watson wrote in a press release that globally, the region will fare better in the coming year.

“Q1 2023 proved MENA IPOs continue to go against global trends in these uncertain economic times, building on the momentum from last year,” he said.

What happened: Saudi Aramco decided to push back its planned IPO, one that would have been one of the world’s biggest this year, according to Bloomberg, quoting unidentified sources on Thursday.

The world’s most valuable company as of May 2022, with a worth of $2.3 trillion, revealed a 19% drop in