DUBAI, May 10 (Reuters) – Middle East companies raised nearly 16% of total global initial public offering (IPO) proceeds in the first quarter as the region’s momentum continued from a blockbuster 2022, consultancy EY said on Wednesday.
Companies in the region raised $3.4 billion from 10 IPOs in the first quarter. These included a $2.5 billion listing of ADNOC Gas, a unit of state-owned oil giant Abu Dhabi, which was the world’s largest IPO of the quarter.
“MENA IPOs continue to buck global trends during these uncertain economic times and build on the momentum of the past year,” Brad Watson, EY’s Middle East and North Africa (MENA) head of strategy and transactions, said in a statement.
Middle East companies raised about $21.9 billion through IPOs last year, Dealogic data shows, more than half of the total for the Europe, Middle East and Africa region.
MENA saw its IPOs fall 33% and its value down 14% in the first quarter from the year-ago period.
But that compares to a 61% decline in global IPO volume in the first quarter, in which 299 companies went public to raise $21.5 billion, EY said.
“At the end of the quarter, six of the 10 MENA IPOs had a positive return relative to their IPO price,” EY said.
“Saudi Arabia remains the most active market by volume, while the largest IPOs continue to be dominated by the energy sector,” said Gregory Hughes, EY’s MENA IPO and Transaction Diligence Head.
The Abu Dhabi National Oil Company announced on Wednesday that it intends to offer 15% of its shares in its ADNOC Logistics & Services (ADNOC L&S) unit through an initial public offering on the Abu Dhabi Stock Exchange, expected on June 1.
Reporting by Yousef Saba; Editing by Alexander Smith
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