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DFM welcomes IPOs raising AED 208.2bn in 9M

DFM welcomes IPOs raising AED 208.2bn in 9M
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By: Malek Salama

Dubai - Mubasher: The Dubai Financial Market (DFM) welcomed new initial public offerings (IPOs) worth AED 208.20 billion ($56.70 billion) during the first nine months (9M) of 2022.

These IPOs aim to support Dubai’s financial sector and advance its growth trajectory to realise more achievements that cement the emirate’s position as one of the key capital and business markets worldwide.

Following is a list of three IPOs listed on DFM during the January-September period of 2022.

In April 2022, the Dubai Electricity and Water Authority (DEWA) raised around AED 22.40 billion ($6.10 billion) through its IPO. State utility DEWA set the final offer price for its IPO at AED 2.48 per share, offering 9 billion ordinary shares, representing 18% of the issued capital.

DEWA's IPO was the largest offering in the UAE and the second largest in the Europe, Middle East, and Africa region since Saudi Aramco’s record IPO in 2019. DEWA began trading its ordinary shares on DFM on 12 April under the ticker DEWA UH EQUITY, implying a market capitalisation of AED 124 billion.

The listing of DEWA came in line with Dubai’s plans to make 10 state-owned companies go public to boost the capital market, bringing the index’s market capitalisation to AED 3 trillion ($816.86 billion).

In June 2022, TECOM Group, a member of Dubai Holding Group, raised AED 1.70 billion ($463 million) in its IPO where the final price was set at AED 2.67 per share, implying a market cap of AED 13.40 billion.

Local, regional, and international investors have subscribed to the IPO, which attracted total gross demand of AED 35.40 billion, implying an oversubscription level of over 21 times in aggregate.

A month later, TECOM started trading on DFM and listing 625 million ordinary shares, accounting for 12.50% of the capital, under the symbol TECOM.

In September 2022, Salik Company listed 1.90 billion ordinary shares, accounting for 24.90% of its share capital, at a price of AED 2 per share. The offering was oversubscribed 49 times at an amount of AED 184.20 billion ($675 billion).

On 29 September 2022, Salik began trading on DFM under the ticker SALIK, implying gross proceeds exceeding AED 3.70 billion ($1 billion) and a market cap of AED 15 billion.

Following the transaction, Salik remained a state-owned company, with the Dubai government holding 75.10% of its share capital.