GCC Markets Witnessed the Highest Number of Companies Going Public
GCC markets, over the past 7 years, witnessed the highest number of companies going public in the year 2022 with 27 IPOs raising a total of $14.5 billion, said Kuwait Financial Centre (Markaz) in a new report.
Markaz’s “GCC Equity primary Offerings” overview reported that GCC witnessed a total of 90 initial public offerings (IPO) in the period from 2016 – August 2022, with a total offering amount of $55.9 billion as of August 31, 2022.
GCC to See More IPOs in the Coming Months
“The trend in the GCC and Oman was fueled by the introduction of big state-owned companies in a bid to draw private companies to the stock market and to create a surge in liquidity and interest among investors,” Abdelhadi Laabi Chief Marketing Officer, Emporium Capital, said.
Speaking about the new IPOs planned in the Gulf Cooperation Council (GCC), he said that several share sales are planned or expected in the region like Empower in the Dubai Financial Market (DFM) which will start its subscription period by the next month.
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This year’s IPOs were topped by the introduction of Dubai Electricity & Water Authority - DEWA which raised $6 billion in the DFM followed by the listing of Borouge in the Abu Dhabi stock market with $2 billion. Other notable listings include Salik which raised $1 billion, TECOM Group Dubai with $1.7 billion and ADNOC Group drilling with $1.1 billion.
Investors and Current Economic Conditions
At a time when uncertainty is rife and economic conditions are deteriorating, Laabi said that investors could find opportunities in strong companies that harbor solid business models and competitive products.
“In this regard, companies with strong brands and superior pricing power could be more resilient against inflation as they can raise their selling prices when input costs increase, saving their margins in the process", he added.
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