IR Monitor Middle East – March 2023 Round-Up
The current flurry of activity in the region’s capital markets show no sign of slowing down. March welcomed the largest-ever IPO on the Abu Dhabi bourse and the largest IPO globally this year in the form of the successful listing of ADNOC Gas. This was quickly followed up with another celebrated IPO listing on the Abu Dhabi Exchange by Presight AI, while the Dubai based family owned Al Ansari Financial Services, which finalised its offer price at the top end of the range, is expected to list early next month.
This month also saw the listing of one of Oman’s main energy firms on the Muscat Stock Exchange. Last year, companies from the Middle East raised $21.9 billion through IPOs, more than half the total for the wider EMEA region, according to reports. Private capital fund managers deployed $19.8 billion in 191 Middle East deals last year, the only place in the world to post a year-on-year increase in investment value in 2022, according to the Global Private Capital Association. Research from EFG Hermes showed that the UAE and Saudi Arabia are likely to continue to lead the MENA IPO boom in 2023. The UAE alone has 11 IPOs worth $2.2 billion in the as per recent data from the UAE’s Securities and Commodities Authority.
This month’s news
Al Ansari Owners Raise $210 Million in Dubai’s First IPO of 2023
The owners of remittance and money exchange firm Al Ansari Financial Services raised Dhs 773 million ($210 million) this week, after pricing shares at the top of the range. Al Ansari Holding LLC sold 750 million shares for Dhs 1.03 each, valuing the company at $2.1 billion, according to a statement. Its shares will start trading on April 6. The IPO — Dubai’s first this year — attracted total demand of more than 12.7 billion dirhams, including a Dhs 200 million commitment from cornerstone investor National Bonds Corp. Excluding the cornerstone tranche, the IPO was oversubscribed about 22 times.
Abu Dhabi says there’s more to come after year’s biggest IPO 
At least eight companies are expected to list in Abu Dhabi this year after the emirate’s main energy company ADNOC pulled off the world’s biggest listing so far in 2023. The IPO candidates span industries from technology and media, to asset management and a firm that operates in the regenerative medicine sector, according to Sameh Al Qubaisi, director general of economic affairs at Abu Dhabi’s department of economic development.
UAE, Saudi Arabia to lead IPO Mena markets: EFG Hermes
The IPO markets in Middle East and North Africa will continue to witness strong momentum in 2023 led by GCC countries, especially UAE and Saudi Arabia, according to a EFG Hermes report. “The GCC in particular has demonstrated resilience against global turbulence, driven by a solid crude oil market and government initiatives that have collectively deepened the region’s capital markets,” noted EFG Hermes Holding Group CEO Karim Awad.
Presight AI soars 143% in trading debut on Abu Dhabi’s ADX
Presight AI Holding Plc, a data analytics firm owned by Abu Dhabi’s G42, soared in its trading debut, in the latest sign of strong demand for Middle Eastern offerings. The shares jumped as much as 176% at open this week. Presight raised $496 million after setting the offer price at Dhs 1.34 a share. The stock closed 143% higher. The Presight IPO drew in orders worth $26 billion and was 136 times oversubscribed excluding the commitment from the Company’s cornerstone investor, International Holding Company PJSC.
Oman’s Abraj Energy celebrates successful listing on Muscat Stock Exchange
Oman celebrated its first listing on the Muscat Stock Exchange (MSX) this month, within the new framework of capital markets reforms led by the Oman Investment Authority (OIA). Abraj Energy Services, the oil and gas drilling business of state energy company OQ SAOC, raised $244 million from the initial public offering of its oil-drilling unit, pulling off Muscat’s largest listing in more than a decade and drawing in Saudi Arabia’s wealth fund as an anchor investor. Investors placed $2 billion of orders for the IPO of Abraj Energy Services, the latest sign of strong demand for deals in the energy-rich Gulf. FTI Consulting had been the strategic communications consultant on the transaction and had advised the firm through its 8 month long IPO process.
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