Arena by DFM: Dubai launches IPO market for private companies

 Arena by DFM: Dubai launches IPO market for private companies

Dubai: At the second edition of the MENA Capital Market Summit, Dubai Financial Market (DFM) unveiled its flagship initiative, Arena by DFM, a platform for Initial Private Offerings. DFM Arena is a new approach to capital raising and investment within the MENA region and is designed to catalyse growth opportunities for both companies and investors.

Initiative provides a platform for various private companies, including family conglomerates, Small and Medium Enterprises, and businesses at various growth stages.

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Through the platform, companies can access capital through diverse assets, including equity and debt, with plans to introduce additional asset classes. Additionally, venture capital firms can expand their investor base by selling private market shares, thus establishing a previously unavailable liquidity pool.

Additionally, privately listed companies on Arena will have the option of limiting investor access to institutional investors, employees only, or family and founding members, offering a unique pre-IPO listing option.

For companies seeking to raise over Dh35 million, Arena offers cost-effective access to an extensive network of investors and fosters a collaborative approach with transparency throughout the process.

Arena empowers private enterprises to access capital markets directly and engage with DFM's purpose-built book-building process as a regulated alternative to conventional financing routes. Issuers can significantly reduce transaction costs with streamlined offerings, including memorandum review and timelines.

For investors, DFM Arena provides exclusive access to DFM private market investments, including early-stage growth opportunities to diversify their investment portfolios.

DFM's CEO, Hamed Ali, emphasised the significance of the initiative, stating: "The announcement of Arena marks a pivotal moment in DFM's commitment to providing issuers with a transparent and streamlined avenue for capital raising. The platform combines the advantages and efficiency of direct listing with the DFM's diverse investor base and capabilities.