Since the start of the year, the UAE stock markets have welcomed a fresh market capitalisation of approximately Dh21.3 billion, driven by three new initial public offerings, according to data. This aligns with the market's strategy to elevate its market value to approximately Dh6 trillion in the near future. The new IPOs and listings have boosted market liquidity, enhanced investment appeal, and reinforced the UAE's financial markets as a pivotal global financial and business hub. Alef Education Holding plc spearheaded this trend with a market capitalisation of about Dh9.45 billion, marking the first IPO on the Abu Dhabi Securities Exchange (ADX) in 2024. Following a successful offering that raised Dh1.89 billion through the sale of 1.4 billion shares, representing 20% of the company's shares, Alif Education started trading at Dh1.35 per share. The IPO saw overwhelming demand, surpassing the subscription target by 39 times, despite an increase in individual investor allocation from 8% to 10%. In March, Parkin, Dubai's sole operator of paid public parking, listed on the Dubai Financial Market (DFM) with a market capitalisation of Dh6.3 billion, the first listing of 2024. This move supports Dubai's strategic financial market development plans announced in late 2021. Parkin's listing drew significant interest from both international and regional institutional investors and UAE individual investors, with total subscription requests hitting around Dh259 billion, oversubscribing the offering by nearly 165 times. This robust demand reflects strong investor confidence in Parkin's growth strategy, bolstered by Dubai's stable economic growth and population increase. Spinneys 1961 Holding plc also listed on the DFM in May, achieving a market capitalisation of Dh5.5 billion post a highly subscribed public offering. The company attracted widespread interest from regional and international investors, including institutions and individual investors in the UAE, with total subscription requests reaching approximately Dh71 billion. Overall subscription requests exceeded the offering size by 64 times for all investor segments combined (excluding the anchor investor), setting a new record for demand and coverage ratio for non-governmental IPOs on the DFM in recent years.
Text: Lara Palmer
17.06.2024
New listings enhance market liquidity and solidify UAE's position as a global financial hub