Dubizzle Group said on Wednesday it has decided to postpone its plans for an initial public offering (IPO), without giving a reason for the move.
The postponement comes barely 10 days after the company announced its intention to float and one day before its subscription period was set to open.
The Dubai-based digital classifieds marketplace announced plans on October 13 to proceed with an IPO and list its ordinary shares on the Dubai Financial Market (DFM).
Dubizzle said it will "assess optimal timing for the offering in the future".
"Since announcing its intention to float, Dubizzle Group has seen strong engagement and interest from investors, reflecting the company’s market leadership, profitability and growth prospects across the UAE and Saudi Arabia," the company said.
The offering was to have represented about 30.34 per cent of the company’s total issued share capital, including newly issued and existing shares sold by current shareholders, the company said this month.
The subscription period was to have opened on October 23 and closed on October 29, with trading expected to have begun on November 6.
The company, known for its flagship platforms Dubizzle and Bayut, attracts about 18 million monthly active users. Recent acquisitions – including DriveArabia, Property Monitor and Hatla2ee – have strengthened Dubizzle's market position and expanded its product offerings.
Rothschild & Co had been appointed independent financial adviser for Dubizzle's IPO, while Emirates NBD Capital was to have served as listing adviser and one of the joint global co-ordinators, alongside Goldman Sachs, HSBC and Morgan Stanley.
The company had earlier said it plans to use proceeds from the offering to fund its employee stock plan, pursue strategic M&A opportunities and maintain flexibility for future growth.
Dubizzle "remains focused on executing its strategy of growing its highly profitable UAE business and expanding its footprint in Saudi Arabia", it said on Wednesday.
