Page 225 - AAE PR REPORT - June 2024

5/29/24, 3:54 PM DIFC Publishes Regional Outlook for Banking and Capital Markets. | UAE News 24/7
Multifactor IPO Growth

Following two years of moderate IPO activity, 2024 shows signs of
a rebound supported by the postponement of several 2023 deals
in anticipation of more favourable market conditions. Based on
data published by EY, 51 IPOs took place in 2022, raising USD
22bn, including a mix of both family businesses and the public
sector.

The privatisation of state-related entities is leading to greater
economic diversification, private sector development and
sovereign liquidity creation. As of March 2024, Dubai had followed
through on six out of the ten government entities it plans to take
public, including Parkin, which was 165 times covered and
attracted USD 71bn in orders – a new record for the emirate.

Another recent example includes the November 2023 listing of
Dubai Taxi Co., a unit of Dubai’s Roads and Transport Authority
(RTA), which raised USD 315mn and was 130 times
oversubscribed, while Saudi Arabia’s wider plans to privatise USD
55bn in assets by 2025 reinforce the increasing regional trend
towards privatisation.

From the private sector, the listing of family-owned companies is
helping to drive business growth, succession planning and
enhanced governance and transparency. For example, Al Ansari
Financial Services, one of the UAE’s largest remittance and
foreign currency exchange companies, owned by a local family
group raised USD 210mn from its 2023 IPO, while Spinney’s
(Spinneys 1961 Holding PLC), which was incorporated in DIFC to
list its shares on DFM, thereby benefiting from its extensive laws,
regulations, and stability, listed in April 2024.

Spurred on by the momentum of other, highly anticipated listings,
such as Lulu’s forthcoming IPO, there is now an ever-growing list
of demonstrable incentives for other family businesses to follow
suit. A third wave of IPOs is expected through FinTech and tech-
enabled start-up exits, helping to stimulate new industries with
high-growth potential, while creating strong demand from investors
and viable exit options for VC investors.

Dubai as a Capital Markets Hub

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