UAE financial markets witness successful IPOs enhance investment attractiveness
Date
6/24/2024 4:49:54 AM
(MENAFN) In recent months, the financial markets in the UAE have experienced the successful initial public offerings (IPOs) of three new companies: Alef Education, Spence, and Parkin. These IPOs have significantly deepened the markets, enhancing their appeal to investors and attracting a new segment of investors, thereby solidifying the UAE's financial markets as some of the most important globally.
According to an Emirati news agency, these new offerings have collectively raised over 4.8 billion dirhams (USD1.31 billion). This achievement comes amidst record high demand from investors, sovereign funds, and global investment portfolios, with total demand for these offerings exceeding 404 billion dirhams. This high level of interest reflects significant confidence in the robust economic strategies adopted by the UAE's major companies and institutions.
The Alef Education IPO alone raised approximately 1.89 billion dirhams through the sale of 1.4 billion shares, representing 20 percent of the company's shares at an offering price of 1.34 dirhams per share. This marked the first IPO on the Abu Dhabi Stock Exchange this year. The Spence offering saw an extraordinary level of demand, with subscription requests exceeding 64 times the available shares across all investor segments (excluding the primary investor). This represents the highest demand and coverage rate for a non-governmental IPO on the Dubai Financial Market in recent years. Meanwhile, the Parkin offering involved approximately 749.7 million ordinary shares, or 24.99 percent of the total issued shares, setting a new record for the highest level of subscription ever on the Dubai Financial Market.
These developments underscore the UAE's strong economic position and the attractiveness of its financial markets to a broad range of investors.
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