The value of IPOs in the six-nation Gulf Co-operation Council (GCC) soared to $11.7 billion in the first nine months of 2008 when compared to $5.9 billion in the same period last year, according to a study.

Strong economic growth had led to the nearly doubling of the IPO value in UAE, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman despite global credit crunch, the study by Gulf Capital, a key private investment firm based in Abu Dhabi.

Although stock markets in the region have recently been jolted by the US financial crisis and persistent foreign sell-offs during summer, the IPO activity remained high during the first nine months and is expected to exceed $29bn between 2008 and 2011, the Emirates Business reported citing the Gulf Capital study.

The study attributed the sharp IPO increase to strong economic performance in the six member states, with real gross domestic growth expected to exceed six per cent during 2007-2009.

Qatar will be the star performer, with a growth of as high as 13.8 per cent followed by the UAE with 6.7 per cent, it said.

The UAE also emerged the second-largest member in terms of IPO value in the first nine months after Saudi Arabia, attracting around $1.28bn.

A breakdown showed the total number of IPOs was as low as nine during 1995-2003 mainly because of weak economic performance due to low oil prices.

In 2004, the number picked up to 12 and jumped to 23 IPOs each in 2005 and 2006. It soared to 33 in 2007 and is projected to reach 151 during 2008-2011.

"During 2008, 48 IPOs have assigned a manager while 78 companies announced their intention to conduct IPO during the period between the fourth quarter of this year and 2011. IPOs during 2008-2011 should exceed 151," the study said.

The figures showed the total value of IPOs soared from $400 million during 1995-2003 to $1.5 billion in 2004 and $6 billion in 2005. The value swelled to $7.5 billion in 2006 and peaked at $12bn in 2007.

A breakdown showed Saudi Arabia attracted the bulk of the IPOs in the first nine months of this year, with a value of around $9.7bn. The value was estimated at $1.28bn in the UAE and $511m in Qatar.

The biggest IPO issuer in the first three quarters of 2008 was the Saudi Al Inma Bank, with a total value of around $2.8bn.