6/25/2023 0 Comments Eric hutchinson jettison![]() The IPO of Abraj Energy Services SAOG, Oman’s largest oilfield services provider, raised US$0.2b on the Muscat Stock Exchange (MSX) and was oversubscribed 8.7 times in the MENA region. Other regional exchanges also saw IPO activity in Q1 2023. Wider region witnesses moderate IPO activity ![]() In addition, Presight AI Holding PLC, an ADX-listed data analytics company, raised US$0.5b with the second IPO from G42's portfolio, which was oversubscribed 136 times. This is the sixth company listed by the ADNOC Group, which continues the trend into 2023 with further announcements. The IPO was oversubscribed 58 times, with its first closing day share price trading 19% higher than its listing price of AED2.37. In the United Arab Emirates (UAE), Abu Dhabi Securities Exchange (ADX) had the largest IPO of the quarter globally, with ADNOC Gas PLC raising US$2.5b. The UAE sees the world’s largest IPO for the quarter There were also two direct listings on the Nomu by Balady Poultry Co. The IPOs came from a range of companies spanning diverse sectors, including Leen Alkhair Trading Co., Horizon Foods Co., Nofoth Food Products Co., Waja Co., BENA Steel Industries Co., Knowledge Net Co. This included six IPOs on the Nomu – Parallel Market with proceeds of US$0.7b as well as one Real Estate Investment Trust (REIT) raising US$0.1b. Once again, KSA was the frontrunner in listing activity in Q1 2023. 2023 shows a healthy pipeline across the region, with several initiatives to support private and government entities on their path to IPO.” “Q1 2023 proved MENA IPOs continue to go against global trends in these uncertain economic times, building on the momentum from last year. At the end of the quarter, six out of the 10 MENA IPOs had a positive return compared to their IPO price, with Presight Al Holding PLC achieving the highest gain of 146.3%.īrad Watson, EY MENA Strategy and Transactions Leader, says: Volatility experienced in the MENA equity market during 2022 continued into Q1 2023 due to rising interest rates, inflation concerns, unexpected global banking turbulence and geopolitical uncertainties, which has impacted investor sentiment. These include Ghida Al-Sultan Company, Foods Gate, MeyarConstruction Co., Saudi Lime Industries Company, First Mills Company and HyperPay. Six companies in the Kingdom of Saudi Arabia (KSA) have announced their listing plans on the Saudi Exchange (Tadawul) Main Market. The MENA region, however, remains buoyant, with a promising pipeline for the rest of the year, driven by various enabling initiatives, such as the Abu Dhabi IPO Fund (ADIPOF). IPO windows are short, and funding conditions are getting tougher, with investors prioritizing value over growth. This follows the trend for 2022, when IPO-bound companies and investors faced ongoing macroeconomic and geopolitical uncertainties, exacerbated by stress in the global banking system. Globally, Q1 2023 saw a total of 299 IPOs, raising US$21.5b - a 61% decrease in volume year-on-year (YoY). ![]() This represents a 33% drop in the number of listings and a 14% decrease in value compared with Q1 2022. The quarter saw 10 IPOs with the combined proceeds of US$3.4b. Saudi Arabia dominated listing activity with six IPOs, two direct listings and one REIT FundĪccording to the EY MENA IPO Eye Q1 2023 report, IPO activity in the MENA region retained strong momentum despite the weaker global sentiment.The mega IPO of ADNOC Gas PLC raised US$2.5b-the highest proceeds globally for the quarter.The quarter marked a 33% drop in volume and a 14% decrease in value compared with Q1 2022.
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