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The local financial markets have witnessed 4 initial public offerings of new companies since the beginning of this year, attracting record requests of nearly half a trillion dirhams, reflecting the great confidence in the strong economic approach adopted by the UAE in its major companies and institutions.
The new offerings succeeded in providing attractive opportunities and broader investment options for investors to participate in the strong growth of the national economy. They also paved the way for companies to begin their journey in the UAE markets, which are one of the most important financial markets at the regional and global levels.
The new offerings collected revenues exceeding 8 billion dirhams, amidst the great and record demand from investors, sovereign funds and global investment portfolios, with the total demand for these offerings reaching approximately 492 billion dirhams.
The new offerings played a major role in increasing the depth of local markets, enhancing their investment attractiveness, and 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 for listing 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 local markets, after demonstrating their resilience in the face of global fluctuations, following the record successes of initial public offerings in the past three years, for giant companies such as DEWA, Alpha Dhabi, ADNOC Drilling, Multiple Play, Americana, Abu Dhabi Ports, TECOM, Salik, Bayanat and Empower.
Parkin was listed on the Dubai Financial Market, as the first listing on the market this year, in line with Dubai’s strategic initiatives to develop capital markets. The offering received exceptional interest from international and regional investment institutions, and from individual investors in the UAE, with total subscription requests for Parkin shares exceeding approximately AED 259 billion, with the value of subscription requests exceeding approximately 165 times.
The offering size amounted to approximately 749.7 million ordinary shares, equivalent to 24.99% of the total issued shares, representing the highest level of subscription ever in the Dubai market.
The IPO of Spinneys 1961 Holding witnessed a wide turnout from regional and international investors, both institutional and individual investors in the UAE, with total demand reaching around AED 71 billion, while total subscription requests exceeded 64 times for all investor segments combined (excluding the primary investor), 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.
Alef Education Holding Company successfully launched and began trading its shares on the Abu Dhabi Securities Exchange last June, as the first initial public offering witnessed by the market during the current year, after collecting revenues of approximately AED 1.89 billion, while the offering witnessed an exceptional level of demand from local, regional and international investors, with the total demand for the public subscription exceeding AED 74 billion.
The IPO was met with strong demand from investors, with the offering exceeding the target value by covering 39 times, even after increasing the percentage of shares allocated to the individual segment from 8% to 10%.
NMDC Energy completed its initial public offering on the Abu Dhabi Securities Exchange (ADX) in September, after demand for available shares exceeded 31.3 times. The initial public offering witnessed strong demand and received subscription requests from investors that far exceeded the supply, with the total value of submitted requests reaching AED 88 billion.
The company’s 1.15 billion shares, representing 23% of the total value of the company’s capital, were offered at a price of AED 2.8 per share, while approximately 0.17% was allocated to individual investors and 6% to corporate investors.
