GCC States Raise $2.5 Billion in IPO Boom

GCC States Raise $2.5 Billion in IPO Boom

Monday, 5 March, 2018 - 09:30
Saudi Arabia stock market . Reuters
Dubai- Asharq Al Awsat
The number of IPOs in the Arab Gulf countries in the fourth quarter of 2017 reached about eight initial public subscriptions, a significant increase compared to the previous quarter, which saw about 5 subscriptions, an economic report said on Sunday.

According to the report, total revenues in the same quarter of these subscriptions amounted to $ 2.5 billion, an increase of $ 2.3 billion compared to the third quarter of 2017, which rested at $ 234 million.

In the fourth quarter of 2017 compared to the same quarter of the previous year (Q4 2016), the number of IPOs and revenues increased significantly-- total revenues reached $ 2.5 billion with a total of 8 subscriptions in the fourth quarter of 2017 against an estimated $ 37 million in a single offering in the fourth quarter of 2016.

The Dubai Financial Market and Abu Dhabi Securities Exchange led the Gulf Cooperation Council's IPO activity in the fourth quarter in terms of proceeds, with two major offerings, raising $2.2 billion - which was 88 percent of total GCC proceeds.

The Tadawul was the largest in terms of IPO volume, witnessing IPOs of three real estate investments, whereas the Muscat Securities Market saw three IPOs that raised total proceeds of $82 million.
In 2017, the total number of GCC IPOs increased significantly to 28 offerings, compared to four in 2016, driven by increased listing activity on the Tadawul's Nomu parallel market, which welcomed nine IPOs together with the introduction of Reit listings, which also saw nine IPOs across the GCC.

Proceeds raised during 2017 were higher by $2.5 billion (322 percent) compared to 2016, mainly due to the $1.3 billion IPO proceeds raised by Emaar Development and $850 million IPO proceeds raised by Adnoc (together 66 percent of total GCC proceeds during 2017).

The fourth quarter boom was felt across the globe with recording total proceeds of $63.5 billion from 370 issues, up 17 percent in terms of proceeds and nine percent lower in terms of the number of IPOs, compared to the fourth quarter of 2016.

In 2017, global IPO activity was robust with total proceeds 204.7 billion from 1,483 IPOs, outperforming the previous year in terms of number of IPOs and total proceeds by 47 percent and 44 percent, respectively, according to data from PricewaterhouseCoopers.

Editor Picks