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Several local companies are moving ahead with plans to list on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) in the coming years, as the UAE market has so far performed well in the face of global volatility following record success. The 2022 IPOs complement the 2021 IPOs, including Fertiglobe, Adnoc Drilling, Alpha Dhabi and Multiply Group.
The Dubai Electricity and Water Authority (Dewa) topped the list with total revenues of AED 22.3 billion, with the number of shares available for public offering reaching 9 billion or 18% of the company’s capital, while Borouge’s offering achieved a total revenue of more than 7.34 billion dirhams.
Americana raised AED6.62 billion in gross proceeds in historic IPOs of ADX and Saudi Arabia’s Tadawul, while Abu Dhabi Ports managed to attract AED4 billion in returns from their IPOs.
Meanwhile, Dubai-based toll operator Salik raised more than AED3.7 billion through its IPO in DFM, while Empower raised AED2.7 billion, TECOM Group raised AED1.7 billion and Burjeel raised AED1.1 billion. AED 750 million was raised by Taaleem and AED 628 million by Bayanat.
Listings in the region have sold $22.6 billion this year, Bloomberg said earlier this month.
The frenzy in the Middle East – with 42 listings in just over 11 months – is all the more significant given market volatility and rising interest rates impacting deals, and new offerings in other financial centers have all but stalled. With fewer listings in London, Hong Kong and New York, the UAE and Riyadh have emerged as new IPO hotspots, fueled by high oil prices and investor inflows.
Globally, IPOs are headed for the longest drought since the global financial crisis, with this year’s number of listings the worst since 2008, when IPO values ​​plunged 73%, according to Bloomberg data. This comes after a boom in 2021, when stocks peaked and a U.S. blank-check listing spree led to an unprecedented $655 billion in IPOs. Since then, however, unprofitable high-growth technology companies have fallen out of favor, while consumer goods companies have found a lack of investor support as inflation soars.
The U.S. IPO market has been one of the biggest drags, hit by a collapse in blank-check deals behind a 2021 surge. With $24 billion in listings, the lowest since 1990 and a 93% drop from 2021, bankers say investors will favor a stable of companies that go public next year.
China and the Middle East, two markets that did well in 2022, are likely to continue to do well in 2023, bankers said.
According to WAM and Bloomberg
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