DFM unveils initial private offerings platform ARENA

Image courtesy: Francois Nel/ Getty Images

Dubai Financial Market (DFM) has launched ARENA, a new platform that will help private companies, including family businesses and small companies to raise capital as an alternative to initial public offerings.

ARENA is designed to catalyse growth opportunities for both companies and investors.

DFM’s latest offering also allows venture capital firms to sell the shares of private companies they own on the new platform.

“The platform combines the advantages and efficiency of direct listing with the DFM’s diverse investor base and capabilities,” Hamed Ali, the CEO of DFM said, adding that ARENA marks a pivotal moment in DFM’s commitment to provide issuers with a transparent and streamlined avenue for capital raising.

Privately listed companies on ARENA will have the option of limiting investor’s access to institutional investors, employees-only, or family and founding members, the bourse said in a statement.

The bourse said it offers cost-effective access to an extensive network of investors and fosters a collaborative approach with transparency for companies seeking to raise more than $9.53m (Dh35m).

The new platform is a regulated alternative to conventional financing routes and helps private companies access capital markets directly.

ARENA acts as a catalyst to enhance the funding ecosystem for growth companies, paving the way for a more vibrant and inclusive investment ecosystem.

The platform will operate on technology provided by Nasdaq.

DFM attracts foreign investors

Meanwhile, initial public offerings (IPOs) on the Dubai exchange raised a record $9.4bn (Dhs34.5bn) since 2021, as privatisations and monetisation initiatives, stock market rallies and soaring energy prices are ensuring that investor demand for share sales in the emirate remains high.

The bourse’s robust IPO momentum propelled the DFM General Index (DFMGI) to the fifth position globally in 2023, attracting 230,000 new investors since 2022, according to the state-run Dubai Media Office.

Dubai’s continued listing activity is being driven by a wide range of initiatives that are being implemented by the exchange including an enhanced digital platform and introducing an IPO accelerator programme.

DFM launched futures contracts on DFMGI, which includes the most liquid and largest companies listed on the stock exchange, in May 2023.

Trading futures contracts offer investors the opportunity to access one of the best-performing indices in the world comprising DFM’s largest and most liquid stocks, including Empower, DEWA, SALIK and blue-chip companies such as Emaar and Aramex.

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