DFM, Dubai Chamber of Commerce partner to boost IPOs

The Dubai Financial Market (DFM) and the Dubai Chamber of Commerce have unveiled ‘The IPO Accelerator Programme’ in partnership with 20 regional and global advisors to boost listings on the city’s capital markets.

The programme, which is part of the Dubai Economic Agenda D33 projects, is aimed at cementing Dubai’s position as a global business and financial hub. It will also support businesses in the Middle East on their path to growth and initial public offering (IPO).

DFM and Dubai Chamber are partnering with numerous local and international advisory firms that are a key part of the city’s financial and business ecosystem to accelerate the growth of regional private companies and nurture them for the IPO journey.

“This Programme will provide businesses with the necessary education, support, and guidance to explore their IPO opportunity and contribute to the growth of Dubai’s economy,” said Hamed Ali, CEO of DFM and Nasdaq Dubai.

The programme’s partners include Bank of America, deNovo Partners as well as EFG Hermes, Al Tamimi, Arqaam Capital, Barclays, Citi and Edelman Smithfield.

DFM said Emirates NBD, EY, Goldman Sachs, Grant Thornton, HSBC Bank Middle East, J.P. Morgan, Moelis & Co., Morgan Stanley, PwC Middle East, Rothschild & Co and White & Case are also part of the programme.

#DFM and @dubaichamber of Commerce, announce the launch of ‘The IPO Accelerator Program’ to support businesses in the region on their path to growth and IPO, increasing the momentum of the emirate’s capital markets. pic.twitter.com/NDYLYaGg91

— Dubai Financial Market (@DFMalerts) March 30, 2023

The launch of the programme comes as UAE stock markets are bracing for yet another year of record listings after a total of 48 IPOs in the GCC region fetched $23.4bn in 2022 compared to $7.52bn a year earlier, according to Kamco Invest.

DFM and Dubai Chamber are launching the IPO accelerator in response to this listing frenzy after the Dubai bourse emerged as one of the world’s most active markets in 2022 after it attracted listings from five leading government-related and private companies that raised a combined Dhs31bn

Mohammad Ali Rashed Lootah, president and CEO of Dubai Chambers, said the programme aligns with the city’s economic ambitions to double the size of the economy by 2033 and consolidate its position among the top three global cities.

DFM IPO accelerator programme

Meanwhile, the accelerator programme is aimed at family businesses, large private companies and businesses from sectors that can benefit from Dubai’s capital markets, creating growth opportunities.

DFM and Dubai Chamber together with advisory firms will conduct workshops to prepare businesses and offer one-on-one meetings with key prospects to create a customised route towards an IPO as part of the programme.

The first workshop is scheduled to take place in May 2023 with the participation of 40 private companies from various sectors. Though there are signs that more private and family-owned companies are considering listing on local stock markets, most recent offerings in the UAE have been by state-backed entities companies.

Read: Al Ansari Exchange raises Dhs773m in IPO, attracts bids worth Dhs12.7bn

Earlier this week, UAE money exchange house Al Ansari Financial Services priced its $210m Dubai IPO in one of the first instances of family-owned businesses going public in the country. The Dubai-based firm will join private school operator Taaleem Holdings, which raised $204m in a Dubai listing last year.

An enabling environment

Since the outbreak of the COVID-19 pandemic, stock exchanges in the UAE have introduced initiatives that include flexibility on the minimum stake size required for share sales and promised to reduce or forgo listing fees in a bid to enhance more domestic listings.

Dubai approved the establishment of a market-maker fund worth up to $544.5m in November 2021 and the city unveiled plans to launch a $272.2m fund to encourage tech companies to list on the local bourse.

Abu Dhabi also launched a $1.4bn IPO fund in October 2021 to incentivise private companies to list on the Abu Dhabi Securities Exchange.

Read: Abu Dhabi says there’s more to come after year’s biggest IPO