Abu Dhabi Ports Surges on Debut After $1.1 Billion Share Sale - Bloomberg

Abu Dhabi Ports Surges on Debut After $1.1 Billion Share Sale - Bloomberg

Abu Dhabi Ports rose as much as 17% on its trading debut after a 4 billion dirham ($1.1 billion) share sale, underscoring the strong demand for new listings in the Middle East even as deals from the U.S. to Europe struggle.

The port operator climbed to 3.75 dirhams on Tuesday, up from the offer price of 3.20, before paring gains to 3.61 by 1:10 p.m. in Abu Dhabi. The company, controlled by Abu Dhabi sovereign wealth fund ADQ, sold 1.25 billion shares.

The Middle East enjoyed a boom in initial public offerings last year, as rising oil prices and an easing of coronavirus restrictions fueled investor hunger for equities. Bankers are expecting that to continue in 2022, even as spiking volatility causes companies in other markets to postpone deals.

Abu Dhabi, the wealthiest of the United Arab Emirates’ seven sheikhdoms, saw its IPO market rebound to life in 2021 after a four-year lull. It has offered sweeteners that include flexibility on the minimum stake size required for share sales and promises to reduce or forgo listing fees.

In December, the emirate launched a 5 billion dirham-IPO fund to invest in private-sector companies looking to list on the bourse.