Dubizzle targets Dubai IPO to fund growth, expand market presence

Image: Getty Images/ For illustrative purposes

Dubizzle Group, the leading digital classifieds marketplace in the MENA region, has announced its intention to proceed with an initial public offering (IPO) and list its ordinary shares on the Dubai Financial Market (DFM).

Through its popular platforms dubizzle and Bayut, the company connects individual and business sellers with prospective buyers across multiple verticals, particularly real estate and automotive.

According to a statement by the Dubai-based company, the IPO will comprise approximately 30.34 per cent of the company’s total issued share capital, including 196,114,887 new shares and 1,053,411,504 existing shares sold by current shareholders.

The subscription period for UAE retail and professional investors will open on October 23 and close on October 29, with pricing and allocation for professional investors expected on October 30.

Shares are anticipated to begin trading on or around November 6.

Prosus, Dubizzle Group’s largest shareholder through its subsidiary OLX, has committed to invest $100m as part of the offering, reflecting its long-term support for the company.

“Dubizzle Group is the leading digital classifieds platform in the MENA region, with 18 million monthly active users across property, automotive, general goods, and other categories,” said Imran Ali Khan, CEO of Dubizzle Group. “This IPO marks an exciting new chapter for Dubizzle Group. By welcoming a broader shareholder base, we are positioning the group to accelerate growth, deepen our presence in the markets where we operate, and create long-term value for our users, clients, employees, and shareholders alike.”

Fahd Beg, head of Investment at Prosus, said: “Since our initial investment in 2011, we have seen Dubizzle Group grow into the leading regional classifieds platform. This IPO is both a major milestone and a testament to the vision and execution of its leadership team. We are proud to support the next chapter of growth for this homegrown tech champion.”

The offering will consist of:

• UAE retail offering: 3 per cent of the offering (37,485,791 shares) for retail investors and other investors holding a national investor number at DFM.
• Qualified investors offering: 97 per cent of the offering (1,212,040,600 shares) for professional investors in several countries, including the UAE.

The company and selling shareholders may adjust the size of the offering prior to the end of the subscription period, subject to UAE law.

Proceeds to drive growth for Dubizzle Group

Net proceeds will be used to settle the employee stock ownership plan, fund strategic mergers and acquisitions, and maintain strategic flexibility for growth.

Following the IPO, xCube will serve as both price stabilisation manager and liquidity provider to enhance tradability and maintain price stability.

Rothschild & Co has been appointed as Independent Financial Advisor, Emirates NBD Capital as listing advisor, and Emirates NBD Capital, Goldman Sachs International, HSBC Bank Middle East, and Morgan Stanley & Co. International  as joint global coordinators and joint bookrunners.

Additional receiving banks include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Maryah Community Bank, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, and Wio Bank.

The Internal Shariah Supervision Committee of Emirates NBD Bank has issued a pronouncement confirming that, in its view, the offering complies with Shariah principles, although investors are advised to perform their own due diligence.