MUSCAT: In a year that saw the GCC IPO market flourish, Oman emerged as among standout performers, showcasing its robust energy sector and attracting significant investor interest. Kamco Invest's latest report on GCC IPOs in 2023 highlights Oman's remarkable contribution to regional listings, reflecting a positive shift towards diversification and ample opportunities for growth.
Under the subdued global IPO market conditions, Oman defied the odds by delivering two highly oversubscribed and successful offerings. Leading the way was OQ Gas Network, the fourth-largest IPO in the region, which raised a substantial $771 million in a bid to sell 49% of its stake. This achievement showcased investors' growing confidence in Oman's energy sector and its strong positioning as a regional energy hub.
Abraj Energy Services, another notable player from Oman, captivated investors and generated significant buzz with its IPO. The company successfully raised $244.1 million, further underscoring the remarkable potential of Oman's energy industry. The oversubscription of both OQ Gas Network and Abraj Energy Services signaled the investor appetite for well-structured energy offerings in the region.
Saudi Arabia led the GCC region in IPO issuances in 2023, with 35 out of 46 IPOs debuting on the Nomu or Tadawul. The Nomu market had 27 issuances, while the Main Market had 8. The UAE dominated IPO proceeds, generating 56.3% of the total at approximately $6.07 billion from 8 listings. The average IPO size in UAE exchanges was around $759 million, significantly higher than the GCC average of $124 million. ADNOC Gas had the largest IPO, raising $2.48 billion by selling 5% of its business through a primary market issuance.
Despite these notable achievements by other GCC countries, Oman's prowess in the IPO market demonstrated its determined approach to diversifying its economy beyond oil and gas. With a solid pipeline of potential IPOs in the works for 2024, including companies from sectors such as materials, consumer goods, and transportation, Oman seems poised to maintain its strong standing in the regional IPO landscape.
Oman Observer is now on the WhatsApp channel. Click here
