DFM-listed firms raise Dh60B through IPOs
dubai — Companies listed on the Dubai Financial Market (DFM) have raised more than Dh60 billion of funds through initial public offerings (IPOs) and capital increases since its inauguration in 2000 to date.
IPOs provide the main stream to diversify investment opportunities on the market, enabling investors to participate in the high growth achieved by various economic sectors, experts at the fourth DFM IPO Forum said.
“Promoting going public is one of the main pillars of DFM’s Strategy 2021 and further strengthens the IPO pipeline,” said Essa Kazim, chairman of DFM.
He also added that IPOs and listing contribute in value creation, as several listed companies gained between 85 per cent and 99.5 per cent of their current market capitalisation after listing on the DFM. Kazim also shed light on the latest developments in Dubai’s capital markets and the efforts to strengthen the emirate’s position as a capital markets hub. He explained the DFM’s proactive approach to encourage private and family businesses to go public and list on the market as a significant step in their evolution as well as achieving succession planning.
Going public and listing have countless benefits for companies through the implementation of best practices as part of compliance with the listing requirements, he said. These include the enhanced ability to raise necessary funds as well as improving operational efficiency as a result of implementing corporate governance, transparency and disclosure regulations.
Titled ‘Going public: The journey to sustainable growth’, the forum discussed the role of IPOs in achieving sustainable growth and brought together 153 senior executives from 91 companies, including leading private, family and government businesses as well as IPO advisors. The forum addressed various topics, including company life cycles and the right timing to consider going public, the IPO roadmap for a successful IPO and ways to increase a company’s attractiveness for investment. The event also included three workshops on family business, corporate governance and investor relations.
“The forum has provided an effective platform to discuss recent developments and update businesses on the latest regulations,” Kazim said.