Companies in the region raised $3.4 billion in the first quarter through 10 IPOs, including the $2.5 billion listing of ADNOC Gas, which was the world’s largest IPO in the first trimester.
“IPOs in the Middle East and North Africa continue to buck global trends during these uncertain economic times, building on last year’s momentum,” said Brad Watson, Chief strategy and transactions for the Middle East and North Africa.
Data from the Dialogic Platform for Capital Markets showed companies in the Middle East raised around $21.9 billion from IPOs last year, more than half of the total for the world. Europe, the Middle East and Africa.
The Middle East and North Africa region saw a 33% drop in the number of IPOs and a 14% drop in value in the first quarter compared to the same period a year earlier.
EY said that, compared to a 61% decline in global IPO volume in the first quarter, 299 companies went public to raise $21.5 billion.
“At the end of the first quarter, six out of ten IPOs in the Middle East and North Africa region had a positive return relative to their offering price,” she added.
“Saudi Arabia continues to be the most active market by volume, while the energy sector continues to dominate the biggest IPOs,” said Gregory Hughes, head of IPO operations for the Middle East and North Africa region.
Abu Dhabi’s national oil company, ADNOC, said on Wednesday it intended to offer 15% of its shares in its unit, ADNOC Logistics and Services, through an initial public offering scheduled for the Abu Dhabi Stock Exchange on June 1.
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