UAE Stock Markets Gain AED 21.3 Billion In New Capital From 3 IPOs In 2024

The local stock markets gained nearly AED 21.3 billion in new market value from three IPOs since the start of this year. This is part of a plan to double the market value to around AED 6 trillion in the upcoming years.

The IPOs and new listings have increased market liquidity, making it more attractive for investors and strengthening its position as a key global financial and business hub. Alef Education Holding plc was the first IPO on the Abu Dhabi Securities Exchange (ADX) in 2024, with a market value of about AED 9.45 billion, WAM reported.

After a successful IPO that raised AED1.89 billion by selling 1.4 billion shares (20% of the company), Alef Education started trading at AED1.35 per share. The IPO became strong, exceeding its target by 39 times, even after increasing the allocation for individual investors from 8% to 10%.

Dubai's exclusive operator of paid public parking, Parkin, reached a market value of AED 6.3 billion when it listed on the Dubai Financial Market (DFM) in March. This supports Dubai's plans to develop its financial markets announced in late 2021.

Parkin's listing attracted strong interest from international, regional, and UAE individual investors, with total subscription requests reaching around AED 259 billion, exceeding the subscription value by nearly 165 times.

The high demand for Parkin's IPO shows that investors trust its growth plans and see it as a strong investment, supported by Dubai's stable economy and growing population. Meanwhile, Spinneys 1961 Holding plc reached a market value of AED 5.5 billion when it was listed on the Dubai Financial Market (DFM) in May.

The IPO became popular, attracting a lot of interest from regional and international investors including institutions and individuals in the UAE, with subscription requests reaching approximately AED 71 billion.

The total subscription requests surpassed the offering size by 64 times for all investor segments (excluding the anchor investor), making it the most in-demand non-governmental IPO on the DFM in recent years.

In April, DFM said that it witnessed a significant growth in net profit before tax in the first quarter of 2024. According to DFM's report, the total consolidated revenue increased by 64%, reaching AED 148.1 million in the first quarter of this year, compared to AED 90.1 million during Q1 of 2023.