Three New IPOs on UAE Bourses Attract $5.8 Billion in 2024

In tandem with the UAE government’s plans to increase the market capitalisation to $1.6 trillion, three new initial public offerings (IPOs) in the domestic stock markets has attracted a capitalisation of around $5.8 billion since the beginning of 2024.

The IPOs 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.

The UAE is already a leading investment destination, due to its strategic location, business-friendly policies, and strong economic growth. It is a hub for global trade, with world-class infrastructure and logistics facilities that make it an ideal location for businesses looking to expand their footprint. In addition, the UAE offers a highly educated and skilled workforce, with a young, tech savvy population.

Furthermore, a stable political environment, and a tax-friendly regime has been encouraging foreign investment. Dubai, in particular, is a hub for innovation and entrepreneurship, with a thriving start-up ecosystem that attracts top talent from around the world. All this make the UAE an attractive destination for investors looking for stable returns.

Three New IPOs

Alef Education Holding, which is listed on Abu Dhabi Securities Exchange (ADX), raised $515 billion by offering 1.4 billion shares, constituting 20% of the company’s shares in June this year. The IPO garnered strong demand, exceeding the target subscription value by 39 times, even after increasing the individual investor allocation from 8% to 10%.

Alef Education, known for its AI-enhanced educational solutions, is indirectly controlled by a majority stake from Abu Dhabi Capital Group. The company has achieved full market penetration in public schools for Cycle 2 (Grades 5-8) and Cycle 3 (Grades 9-12) and holds a 40-50% share in the private school sector across the UAE, according to a recent announcement.

Parkin, Dubai’s exclusive operator of paid public parking and listed on Dubai Financial Market (DFM), achieved a market capitalisation of $1.7 billion upon its listing on the bourse 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 $70.5 billion, exceeding the subscription value nearly 165 times.

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

Spinneys Holding, an operator of premium grocery retail supermarkets under the Spinneys, Waitrose and Al Fair brands in the UAE and Oman, saw significant demand from international and regional institutional investors, as well as retail investors in the UAE, attracting around $19.3 billion in orders.

The market capitalisation of Spinneys reached $1.5 billion upon its listing on the DFM in May this year, following a widely subscribed public offering.

The IPO was oversubscribed by 64 times in aggregate (excluding the cornerstone investor), representing the highest level of demand and oversubscription for a non-government-related IPO on DFM in recent years.

Spinneys plans to launch its operations in Saudi Arabia later this year with four stores expected to be operational in Riyadh and Jeddah by year-end and also opened a new store in the UAE, by launching “The Kitchen, by Spinneys” dining concept.

In response to high levels of demand, the UAE retail offering was increased from 5% to 7% of the total offer shares. The final offer price was set at $0.54 per share, at the top end of the offer price range, raising around $375 million and implying a market capitalisation of $1.5 billion on admission to trading.