Saudi Aramco, high-value IPOs face impending pressure in 2023
The United Arab Emirates saw the world’s largest IPO of first quarter 2023, with ADNOC Gas PLC raising $2.5 billion on the Abu Dhabi Securities Exchange.
DUBAI — Saudi Aramco and other regional companies delayed listing their initial public offerings this week in a trend that reflects the growing impact of the regional and global, economic slowdown that began in 2023.
The first quarter of this calendar year saw a 33% drop in volume of IPO listings in the Middle East and North Africa, and a 14% decrease in value compared to the same quarter in 2022, according to global professional service network Ernst & Young.
Economic downturn is expected to continue throughout 2023 in a trend experts believe exposes MENA to external shocks that could further exacerbate economic hardships.
Still, Ernst & Young MENA Strategy and Transactions Leader Brad Watson wrote in a press release that globally, the region will fare better in the coming year.
