The initial public offering (IPO) market in the Middle East has suddenly come to life, thanks to a series of listings expected to raise billions of dollars, as the UAE capital Abu Dhabi seeks to catch up with its regional leader, Saudi Arabia's Riyadh. The listings in Abu Dhabi come amid the emirate's push to revitalize the local stock market, starting with "Yahsat," the satellite communications operator, which launched a wave of IPOs in July, marking the first listing on the exchange in nearly four years. Since then, announcements of billion-dollar listings have been made.
The Abu Dhabi National Oil Company (ADNOC) announced on Monday that it plans to sell stakes in its drilling unit, which would be classified as one of the largest IPOs in the United Arab Emirates. Additionally, Abu Dhabi Holding, the new sovereign wealth fund in Abu Dhabi, announced plans to list Abu Dhabi Ports before the end of the year.
Other companies, including Emirates Global Aluminium and the Fertiglobe fertilizer project—a joint venture between ADNOC and chemicals company OCI, backed by Egyptian billionaire Nassef Sawiris—are also considering listings in Abu Dhabi.
Meanwhile, Saudi Arabia has become the most active market for IPOs in the Middle East over the past two years, with three listings on the main market since the beginning of 2021, and more expected in the future.
**Solutions from Saudi Telecom Company**
Saudi Telecom Company's internet services unit aims to raise up to $966 million from an IPO in Riyadh. The offering was fully covered on its first day, another indicator of pent-up demand for buying shares in the kingdom.
**ADNOC Drilling**
ADNOC plans to sell shares in its drilling division in an IPO that could value the company at around $10 billion. The order book building begins on September 13.
**Aqua Power**
Aqua Power, in which the Saudi sovereign fund holds a 50% stake, is set to commence an IPO while seeking funding to transition into a low-carbon energy producing company. The listing is estimated to value the company at around $10 billion or more, with order book building starting on September 15.
**Abu Dhabi Ports**
The sovereign wealth fund (Holding) plans to list Abu Dhabi Ports on the emirate's stock exchange before the end of 2021.
