Three new IPOs added Dhs21.3b to UAE’s markets’ capitalisation in 2024

The local stock markets attracted a new market capitalisation of nearly Dhs21.3 billion, thanks to three new initial public offerings witnessed since the beginning of this year, in line with market plans to double its market value to around Dhs6 trillion in the coming years.

The initial public offerings and new listings contributed to increasing market liquidity, enhancing its investment attractiveness, and solidifying the financial markets’ position in the country as one of the world’s most important financial and business hubs.

Alef Education Holding plc led the way with a market capitalisation reaching around Dhs9.45 billion as the first initial public offering witnessed by the Abu Dhabi Securities Exchange (ADX) in 2024.

Following a successful public offering that raised Dhs1.89 billion by selling 1.4 billion shares, constituting 20 per cent of the company’s shares, Alif Education began trading at Dhs1.35 per share. The IPO garnered strong demand, exceeding the target subscription value by 39 times, even after increasing the individual investor allocation from 8 percent to 10 per cent.

Meanwhile, Parkin, Dubai’s exclusive operator of paid public parking, achieved a market capitalisation of Dhs6.3 billion upon its listing on the Dubai Financial Market (DFM) in March as the first listing for 2024. This aligns with Dubai’s strategic initiatives to develop financial markets announced at the end of 2021.

Parkin’s listing attracted exceptional interest from international and regional institutional investors, as well as individual investors in the UAE, with total subscription requests reaching approximately Dhs259 billion, exceeding the subscription value nearly 165 times.

This strong demand underscores investor confidence in Parkin’s growth strategy as a robust investment opportunity, supported by Dubai’s steady economic performance and population expansion.

The market capitalisation of Spinneys 1961 Holding plc reached Dhs5.5 billion upon its listing on the DFM in May, following a widely subscribed public offering. The company attracted broad interest from regional and international investors, including institutions and individual investors in the UAE, with total subscription requests reaching approximately Dhs71 billion.

Total subscription requests exceeded the offering size by 64 times for all investor segments combined (excluding the anchor investor), marking the highest demand and coverage ratio for non-governmental Initial Public Offerings on the DFM in recent years.

WAM