Dubai progresses in doubling the financial market following DEWA and successful IPOs of TECOM

Dubai is preparing to list more governmental and semi-governmental companies on the Dubai Financial Market (DFM).

This decision is motivated by the great success of the IPO of the Dubai Electricity and Water Authority (DEWA) in April, as well as the success of the IPO of TECOM Group, a subsidiary of Dubai Holding, and by the strong participation of investors to subscribe to the group’s capital. shares, in particular, and the IPO of Dubai companies and institutions, in general.

DEWA and TECOM’s listing raised approximately AED24 billion ($6.5 billion), as they attracted orders worth nearly AED350 billion ($95.2 billion ).

These figures reflect the enormous success and confidence in Dubai’s institutions and companies seeking through their strategies to improve capital markets and increase their ability to attract investors.

The Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, recently signed into law a law to establish road toll operator “Salik” as a public joint stock company (PJSC ).

This allows some of its shares to be listed on the DFM and is seen as a major step in the Government of Dubai’s strategy to improve and grow market performance by listing a number of companies in the future.

Salik is part of the Roads and Transport Authority (RTA) in Dubai. The road toll system was launched in 2007 by the RTA to reduce traffic congestion on the Sheikh Zayed Highway and boost state revenue.

Salik has eight toll booths and three million registered vehicles, of which 1.8 million are registered in Dubai, according to the Dubai Media Office.

The coming period should see more listings on the DFM, which would strengthen its position and appeal to investors.

This is in line with Sheikh Mohammed’s vision to achieve economic and development renaissance in Dubai in particular, and the UAE in general, and to gain a diversified, sustainable, more competitive and flexible knowledge-based economy. and innovation.

A report on Wednesday said the great success achieved in TECOM’s IPO reflects the high confidence of global investors in Dubai’s economy and its key institutions and infrastructure.

TECOM’s global supply attracted substantial demand from qualified institutional supply and UAE retail with total gross demand reaching AED35.4 billion ($9.6 billion ), which implies an oversubscription level of more than 21 times in total at the final price.

It previously announced that it was setting the final offering price for its IPO at AED2.67 ($0.72) per share.

The UAE retail supply reached an oversubscription level of almost 40x in total, making it the highest ever oversubscription multiple for IPOs on the DFM.

Due to extremely strong demand, the final offering price was set at the high end of the price range and the company raised AED1.7 billion ($462 million) through the IPO. .

TECOM is home to over 7,500 companies and 10 major shopping complexes, including Dubai Internet City and Dubai Media City.

Against this backdrop, DEWA attracted AED315 billion ($85.7 billion) in demand for the IPO in April, with buyers including sovereign wealth funds, private funds and 65,000 individual investors.

DEWA said in its prospectus that the sale of 18% of the shares by the government of Dubai was aimed at increasing trading liquidity in the stock market and increasing its own visibility with international investors.

The shares began trading on the DFM on April 12, with DEWA being the largest company on the exchange with a market capitalization of AED124 billion ($33.8 billion).

Demand for DEWA’s IPO has been strong, prompting it to first increase the size of the institutional offering and then to nearly triple the retail share on Saturday.

Dubai’s deputy governor, Sheikh Maktoum bin Mohammed, announced plans in November to take 10 government-linked companies public to boost stock market activity to three trillion dirhams (about $817 million).

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