DFM launches incentives for private businesses’ IPOs across key growth sectors

Private companies in technology, transport & logistics, healthcare, pharmaceutical, manufacturing, and agri-tech will be offered incentives to go public and list on the DFM



Under the programme, the DFM seeks to attract companies belonging to rapidly growing sectors that are substantially contributing to the economy. — File photo
Under the programme, the DFM seeks to attract companies belonging to rapidly growing sectors that are substantially contributing to the economy. — File photo
by

Muzaffar Rizvi

Published: Tue 16 Nov 2021, 6:10 PM

Last updated: Tue 16 Nov 2021, 8:32 PM

The Dubai Financial Market (DFM) on Tuesday announced a major initiative to encourage new initial public offerings (IPOs) and listings from private companies in rapidly growing economic sectors that strongly contribute to the GDP of the emirate.

The market regulator said the incentives programme encompasses unprecedented benefits including financial support to the cost of private companies’ IPOs on DFM’s Main Market and listing on the second market. The package also offers post listing support through participation on the exchange’s roadshows globally in addition to a three years’ waiver on listing fees, AGM fees and dividend distribution fees.

Under the programme, the DFM seeks to attract companies in technology, transport & logistics, healthcare, pharmaceutical, manufacturing, and agri-tech sectors to go public and list on the DFM. The programme is in line with the unwavering efforts to strengthen Dubai’s position as global capital markets hub that included the launch of an Dh2 billion market maker and an Dh1 billion IPOs support fund to encourage tech companies to list on Dubai markets.

Hamed Ali, CEO of DFM and Nasdaq Dubai, said Dubai is home to unparalleled portfolio of regional and international private companies.

“The new incentive programme stems from our commitment at DFM to become a platform that accelerates the growth of the private sector and to mirror Dubai’s success as a world-class base for leading businesses regionally and internationally,” he said.

Moreover, he said attracting new IPOs will provide DFM’s global network of investors from over 208 nationalities with new investment opportunities.

The Dubai Securities and Exchange Higher Committee has also evolved a strategy to list 10 state-backed companies on Dubai Financial Market to increase the size of the stock market in the Emirate to Dh3 trillion in the coming period. It has already indicated that the Dubai Electricity, Water and Power Authority and Salik toll system will be listed on the DFM initially.

Analysts said the latest initiative is aimed at making Dubai a more competitive market against bigger bourses in the region that are seeing larger listings and strong liquidity.

— muzaffarrizvi@khaleejtimes.com


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