DFM’s IPO Market Performance Robust in 2024

Dubai Financial Market’s (DFM) IPO market had a robust year with three successful listings – from Parkin, Spinneys, and talabat – raising $2.85 billion in 2024 compared with $540 million in the previous year.

Talabat Holding, the region’s premier on-demand delivery platform, raised $2.04 billion through its IPO and the listing drew significant demand from regional and international investors, standing out as the largest global technology IPO of the year.

The Spinneys 1961 Holding’s IPO, a premium grocery retailer, attracted $380 million and implied a market capitalisation of $1.5 billion and Parkin Company approximately raised $430 million through its IPO.

DFM CEO Hamed Ali said that the achievements of 2024 reflect the growing depth and maturity of Dubai’s financial markets. The success of landmark IPOs in 2024, coupled with increased trading activity and foreign participation, reinforced Dubai’s appeal as a preferred destination for companies and investors worldwide.

underscoring its position as the leading financial exchange in the region, DFM’s consolidated results for the fiscal year ending 31 December 2024, highlighted a 24% increase in net profit (pre-tax) to $111.43 million, compared with $89.74 million in 2023. The growth was driven by robust trading volumes, strong capital inflows, a surge in both retail and institutional investor activity and sustained market performance in addition to investment returns performance.

DFM’s market capitalisation also grew to $246.94 billion, a 32% rise from $187.31 billion in 2023. Average Daily Trading Value (ADTV) increased by 5%, reaching $115.16 million, while total traded value grew by 5.5% to $29.13 billion.

DFM Chairman Helal Al Marri said that the results reinforced Dubai’s position as a premier destination for global investors and align with the leadership’s ambition to solidify the emirate as the leading international financial hub.

From record-breaking IPOs to strong trading activity, innovative product launches and influx of foreign investor participation, we will continue to focus on attracting and retaining global capital and creating long-term value for all our stakeholders, he added.

Financial Performance

DFM reported total revenues of $172.15 million in 2024, marking a15.5% increase from the previous year. This revenue included $96.13 million in operating income and $76.01 million in investment returns and other income. Overall expenses excluding tax amounted to $60.71 million, compared with $59.32 million during the corresponding period in 2023.

Last year, DFM on-boarded 138,262 new investors, marking a significant increase of 120.5% compared to the 62,676 new investors registered in 2023, of this, 85% were foreign investors. Foreign investors contributed to 50% of the total trading value in 2024 compared to 47% in 2023 with market capitalisation share at 21% at the close of the year.

Additionally, the exchange witnessed a notable surge in interest from institutional investors, with their trading share rising sharply to 65% compared to 58% in 2023 reflecting the market’s strong appeal for a broadening and increasingly diverse investor base.

Retail investor participation on the Dubai Financial Market (DFM) has grown substantially in 2024, Retail segment contributed 35% of total trading activity last year, highlighting the influence of retail investors, which was more evident in the recent IPOs, where retail tranches were expanded to meet strong demand: Spinneys increased its retail tranche from 5% to 7% while Parkin raised its tranche from 10% to 12%.