A total of four IPOs were issued in the third quarter of the year, up marginally compared to the previous quarter, when three listings took place, according to the latest report from PwC.
But proceeds raised from the four IPOs amounted to $140m, down 18 per cent compared to $171m during Q2 2017.
On a year-on-year basis, Q3 2017 experienced a recovery as there were no IPOs in Q3 2016, the report stated.
Tadawul remained the dominant exchange in the GCC in terms of IPO proceeds, raising $110m via two IPOs, comprising 79 per cent of the total IPO proceeds in Q3 2017. The largest IPO during the quarter was by Zahrat Al Waha Trading, which raised $61.2m, with the second largest from Al Maather REIT Fund raising $49.1m.
The other two IPOs in the third quarter were listed on the Muscat securities Market – the stock exchange’s first offerings since June 2015. The two offerings – one from Al Ahlia Insurance and another from Vision Insurance – raised $30m, comprising 21 per cent of total IPO proceeds during Q3.
So far this year, the GCC region has seen 17 IPOs compared to four over the same period in 2016.
However, proceeds raised year-to-date are 4 per cent lower compared to the same period in 2016, despite the increased number of IPOs.
This is mainly due to the low value of IPOs listed on Saudi’s Nomu parallel market in this year, said PwC.
Steve Drake, head of PwC’s Capital Markets and Accounting Advisory Services team in the Middle East said: “GCC IPO market activity this quarter gained momentum representing a general improvement in market conditions and investor confidence in the region.
“We are seeing more and more companies engaging in IPO readiness activities, preparing themselves and getting ready for the right window. We expect to see companies go to market during 2018.”