Initial Public Offerings (IPOs) play a vital role in supporting businesses’ efforts to achieve sustainable growth due to the numerous benefits of listing on capital markets including the enhanced ability to raise necessary funds as well as improving the operational efficiency as a result of implementing corporate governance, transparency and disclosure regulations. According to capital markets experts, the IPOs provides the main stream to diversify investment opportunities on the market enabling investors to participate on the high growth achieved by various economic sectors.
Titled; going public: the journey to sustainable growth, the DFM fourth IPO Forum organized on Monday, 20 November 2017 has thoroughly discussed the role of IPOs in achieving sustainable growth with the participation of 153 Senior executive from 91 companies including leading private, family and government businesses as well as IPO advisors.
Private companies accounted for 70% of participants compared to 15% for family groups, 8% free zone businesses and 7% for government companies. As for the sectoral breakdown, conglomerates represented 22% of participating companies compared to 19% for financial services and banking, 10% for building and construction, 9% for services, 8% for industrial goods, whilst the remaining percentage distributed amongst other sectors.
During the opening presentation, His Excellency Essa Kazim, Chairman of DFM shed light on the latest developments in Dubai’s capital market and the widespread efforts to strengthen the emirate’s position as a dynamic capital markets hub. Additionally, he explained DFM’s proactive approach to encourage private and family businesses to go public and list on the market as a significant step in their evolvance as well as achieving succession planning. Going public and listing also have countless benefits for listed companies through the implementation of best practices as part of compliance with the listing requirements.
According to His Excellency Essa Kazim, Chairman of DFM, the IPO and listing massively contributes in value creation, as several listed companies gained between 85% and 99.5% of its current market capitalization during the post listing on DFM.
HE/ Essa Kazim said: “DFM regularly organizes this exclusive forum as part of its commitment to enrich dialogue amongst various stakeholders on opportunities and best practices in this sector. The forum has provided an effective platform to discuss recent developments, update businesses on the latest regulations and shed light on the various benefits capital markets provide to companies implementing sustainable growth strategies. Furthermore, the forum is an opportunity to listen to the IPO advisors as well as business leaders on the successfully implemented IPOs and listing on DFM. We are delighted to see this big number of senior executives from tens of companies attending the event in us with a clear indication on the growing interest amongst private and family businesses towards going public and listing. In fact, promoting going public is one of the main pillars of DFM’s strategy 2021 and further strengthens the IPO pipeline as IPOs represent the main stream for diversifying investment opportunities and achieve the best possible representation of key economic sectors on our market.”
It is noteworthy that DFM-listed companies have raised more than AED 60 billion of funds through IPOs and capital increases through DFM since its inauguration in 2000 to date.
The event attracted numerous high level business leaders and advisors including; Fadi Ghandour
Executive Chairman, Wamda - Group and Founder, Aramex, Christopher Hawley
Managing Director, Head of Middle East, Rothschild, James Fleming, Managing Director, Co-Head of ECM EMEA, Bank of America Merrill Lynch (London) and Achintya Mangla, Manging Director, JP Morgan (London). The forum included a session for IPO advisors of international, regional and local banks moderated by Saeed Al Awar, Director of Rothschild and another session about connecting with investors moderated by Redwan Ahmed, Director of Investor Relations, DP World.
The forum has addressed various topics including; company life-cycle and the right timing to consider going public, the IPO Roadmap to a successful IPO and ways to increasing company’s attractiveness for investment.
Specialized workshops
As part of DFM’s effrots to promote best practices amongst private and family businesses and prepare them for any potential IPOs, the event also included three workshops on Family Business, Corporate Governance and Investor Relations.
