The total number of IPOs/listings in the region fell by approximately 65 per cent year-on-year to six issuances from 17 deals witnessed in 2014. After almost equaling the pre-crisis highs of capital issuances via IPOs in 2014 (US$10.89bn) total capital raised during 2015 plunged by 86 per cent year-on-year to US$1.48bn.

Corporates looking to enter the market remained cautious during the year as the significant drop in oil prices that transpired during 2015 coupled with geopolitical concerns and global economic uncertainty weighed heavily on IPO issuances and equity markets the report said.

Saudi Arabia remained the most active IPO market in the GCC in 2015 as it saw four out of the region's six IPO deals listed on its exchange.

Globally as well IPO trends receded in 2015 albeit at a slower pace compared to the GCC as the number of IPO issuances fell by two per cent to 1218 deals while capital raised declined by 25 per cent to US$195.5bn as per EY. The Asia-Pacific region reportedly dominated IPO activity globally in 2015 with 55 per cent of the deals despite the freeze of Chinese exchanges on IPOs for a period of time during the year.

Barring already announced IPOs in the GCC for 2016 the year forward is likely to push issuers with ambitions of listing to put their plans on hold until market conditions improve and concerns considerably alleviate.

Regional IPO activity in the GCC came to a standstill in the back-half of 2015 barring the listing of Al-Andalus Real Estate Co in Saudi Arabia during December which closed by the end of the year. The stock is up for listing during the first week of 2016. Post-2014 activity slowed down in the first quarter of 15 but picked up pace in the second quarter as bulk of the capital issuances (five out of six listings) were recorded during the quarter.

Though the latter half of 2015 was affected by the lull of business activity during the Eid and summer holidays the slowdown in listings was mostly ascribed to the negative sentiment prevalent in the market from falling oil prices growing geopolitical concerns and broader economic uncertainty. As a result the number of deals in 2015 even dipped lower than activity observed during 2011-13 (nine listings average). The high level of capital acquired through the primary market in 2014 was boosted by the listing of National Commercial Bank (NCB) of Saudi Arabia which amounted to approximately US$6bn. Nevertheless capital issuances dropped by over 69 per cent year-on-year in 2015 even after excluding NCB's IPO the report said.

In terms of industries which achieved the highest number of IPOs the industrial manufacturing sector achieved two issuances during 2015; and remained the prominent sector behind financial services in terms of issuances during the past 15 years. On the other hand after a year dominated by financial services (in 2014) the transportation sector raised the largest amount of capital at approximately US$752mn in 2015 from the IPO of Saudi Ground Services Co.

After witnessing broad-based participation from all GCC states in the IPO market in 2014 last year saw only Saudi Arabia Kuwait and Oman take the primary market route. The IPO market in Kuwait which had dried up significantly since 2008 in the aftermath of the global financial slowdown saw its first significant listing since then as Mezzan Holding - the food and beverage major raised US$228mn through its primary listing on the KSE. In Oman utilities player Phoenix Power Co raised approximately US$146mn through its IPO.

All IPOs listed in the GCC during 2015 remained oversubscribed with Oman's Phoenix Power receiving the maximum response from investors as the issue was oversubscribed by 15 times. Saudi Company for Hardware received a significant positive response as well as the issue was oversubscribed by over six times followed by Saudi Ground Services Co which saw its IPO being oversubscribed by 3.4 times.