UAE IPOs raise orders worth 627 billion dirhams, with returns exceeding 56 billion

The local financial markets have witnessed 5 initial public offerings (IPOs) for new companies since the beginning of this year, attracting record orders exceeding 627 billion dirhams, which reflects great confidence in the strong economic approach that the UAE is adopting in its major companies and institutions..

According to monitoring by the Emirates News Agency, WAM, the new offerings raised approximately 14.4 billion dirhams, amid a large and record turnout by investors, sovereign funds, and global investment portfolios, while the market value of the five new companies reached more than 56 billion dirhams..

The offering of “Lulu Retail Holding” succeeded in being the largest initial public offering in the UAE during the current year, with proceeds reaching approximately 6.32 billion dirhams. The offering also witnessed a total demand from local, regional and international investors exceeding 135 billion dirhams, which represents a record number. For a non-governmental initial public offering in the UAE over the past ten years.

The total number of subscription requests for the “Spence” offering exceeded 64 times for all investor segments combined, which is the highest level of demand and the highest coverage rate among non-governmental initial public offerings on the Dubai Financial Market in recent years, while the size of the “Parkin” offering reached about 749.7 million shares. Ordinary equivalent to 24.99% of the total issued shares, representing the highest level of subscription ever on the Dubai Financial Market..

Financial market experts and financial analysts told the Emirates News Agency, WAM, that the new offerings played a major role in increasing the depth of the local markets and enhancing their investment attractiveness, in addition to attracting a new segment of investors, thus consolidating its leading position as one of the most important financial and business markets in the world. While many local companies are proceeding with their plans to list during the coming period, as “Delivery Hero” is preparing to list the “talabat” platform on the Dubai Financial Market during the fourth quarter of this year..

Listings continue in the local markets, after they demonstrated their flexibility in the face of global fluctuations, after the record successes of initial offerings in the past three years, for giant companies such as “Dewa”, “Alpha Dhabi”, “ADNOC Drilling”, “Multiplay”, “Americana”, and “Multiplay”. Abu Dhabi Ports, TECOM, SALIC, Bayanat and Empower“.

Damian Hitchin, CEO of the Middle East and North Africa region at Saxo Bank, said that the offerings witnessed in the UAE markets during the current year represent a milestone for the region’s economies, especially with the launch of “Lulu” for retail, which reflects the growing strength and reaching a stage of maturity in the retail sector in the Middle East..

He added that the large demand for IPOs in the Emirates highlights the increase in investor confidence in national companies and their promising growth potential, as the funds and proceeds generated are directed to expansion and growth, providing new job opportunities, and supporting infrastructure, which contributes to enhancing comprehensive economic development, and paves the way for The path for other companies to pursue similar growth strategies, and enhances the resilience and strength of the UAE economy.

For his part, Vijay Valesha, Chief Investment Officer at Century Financial, said that the IPO market in the UAE has witnessed great momentum since the beginning of this year, driven by the huge demand for the attractiveness of UAE assets, and that IPO activity is likely to continue with positive momentum during the coming period..

He added that the success of the IPO market is an indication of the confidence enjoyed by the UAE economy, driven by several factors, most notably the country’s strong economic growth, its strategic location, and its proactive efforts to diversify its economy away from oil and gas, in addition to its position as a major center for capital markets, as it enjoys a regulatory environment. Strong and includes more than 230 investment banks operating in the Dubai International Financial Center alone.

Valesha pointed out that the success of the IPO market in the UAE is a testament to the country’s commitment to diversifying its economy and its ability to provide an attractive environment for companies and investors alike, and that the future is expected to witness a boom in IPOs for financial technology companies and emerging companies in the field of technology, driven by demand. Strong investors.

He pointed out that the successful IPOs of family companies such as Al Ansari Financial Services and Spinneys 1961 paved the way for more family companies to enter the stock market..