Dubai IPOs raised $9.4bn in the past three years amid continued economic boom

The aggregate investor demand for public floats during the period crossed $272bn

Salik is among state-owned companies that have listed shares on the Dubai Financial Market. Chris Whiteoak / The National

Companies in Dubai raised Dh34.5 billion ($9.4 billion) through selling shares on the Dubai bourse in the past three years, amid strong investor interest.

Aggregate investor demand for those listings reached more than Dh1 trillion, according to the Dubai Securities and Exchange Higher Committee.

The continued initial public offering activity in that period has helped the Dubai Financial Market maintain a robust growth momentum, pushing its general index to become the fifth-best performer globally last year, the Dubai Media Office said on Wednesday, citing a briefing by the committee.

The DFM General Index, delivered “exceptional performance” last year, crossing the 4,000-point mark for the first time in eight years, the committee briefed Sheikh Maktoum bin Mohammed, Deputy Prime Minister, Minister of Finance and First Deputy Ruler of Dubai, during the meeting.

“The accomplishments of the Securities and Exchange Higher Committee in advancing capital markets have played a crucial role in fostering growth and consolidating Dubai’s leading position on the global financial stage, aligning with our comprehensive vision for the emirate,” Sheikh Maktoum, who also chairs the higher committee, said.

A significant increase in trading activities, a rise in capital inflows and an influx of investors drove the record performance of the emirate’s bourse.

The DFM, which surpassed major global markets last year, has attracted 230,000 new investors since 2022, which improved its capitalisation to Dh688 billion at the end of last year, up from Dh582 billion, recorded a year earlier, according to the media office statement.

The DFM, like its peers in the six-member economic bloc of GCC, has performed well over the past two years, driven by continued economic momentum in the emirate’s economy and a flurry of public listings by private and state-owned companies.

Companies in the wider region raised $10.79 billion in IPOs last year, investment strategy and research company Kamco data showed.

The UAE, the Arab world's second-largest economy, topped in terms of the funds raised last year in the GCC through IPOs. Issuers secured $6.07 billion from eight listings on UAE exchanges, accounting for about 56.3 per cent of total proceeds, according to Kamco.

The positive performance of most of the listed stocks is also expected to encourage more firms to list this year.

Parkin, the company set up by Dubai to oversee parking operations, is currently raising as much as Dh1.57 billion from its public float on the Dubai bourse.

The company's IPO comes after Dubai in November 2021 announced plans to list 10 state-owned companies, aiming to expand the size of its financial market to Dh3 trillion.

It also established a Dh2 billion market maker fund to encourage listings from private companies in sectors such as energy, logistics and retail.

Five state-owned enterprises have been listed on the DFM since 2022 and more are likely to list shares in addition to Parkin.

The listing of Dubai Electricity and Water Authority was the largest GCC IPO in 2022, raising $6.1 billion when it listed 18 per cent of its share capital.

Tecom Group raised Dh1.7 billion in a 21 times oversubscribed deal.

Other companies that have listed shares on the DFM so far include Union Co-op, Salik, Emirates Central Cooling Systems Corporation (Empower), Dubai Taxi, Taaleem Holdings and Al Ansari Financial Services.