May 17 2024
DFM introduces ARENA, Dubai’s private market for capital, listing, and investments
Thu 02 May 2024
Dubai: At the MENA Capital Market Summit’s second edition, the Dubai Financial Market (DFM) introduced ARENA, a groundbreaking platform for Initial Private Offerings (IPOs). ARENA by DFM aims to revolutionize capital raising and investment in the MENA region, providing growth opportunities for companies and investors alike.
ARENA offers a platform for a diverse range of private companies, including family conglomerates, Small and Medium Enterprises (SMEs), and businesses at various growth stages. Companies can access capital through different assets such as equity and debt, with plans to introduce additional asset classes. Venture capital firms can also broaden their investor base by selling private market shares, creating a new liquidity pool.
Privately listed companies on ARENA have the flexibility to limit investor access, choosing from options like institutional investors, employees-only, or family and founding members, offering a unique Pre-IPO listing option.
For companies aiming to raise over AED 35 million, ARENA provides cost-effective access to a wide network of investors and ensures transparency throughout the process. Serving as a regulated alternative to traditional financing routes, ARENA empowers private enterprises to access capital markets directly, utilizing DFM’s purpose-built book-building process and streamlined offerings to reduce transaction costs significantly.
Investors benefit from exclusive access to DFM private market investments, including early-stage growth opportunities, enabling diversification of investment portfolios.
Hamed Ali, CEO of DFM, highlighted the initiative’s significance, stating that ARENA marks a crucial step in providing transparent avenues for capital raising. It combines the efficiency of direct listing with DFM’s diverse investor base and capabilities, making private investments in the UAE’s promising companies more accessible.
ARENA facilitates seamless processes, including due diligence, book building, brokered trades, and settlement, through a technology-powered platform. It fundamentally reshapes investment accessibility and efficiency, enhancing the funding ecosystem for growth companies and promoting a vibrant and inclusive investment environment.
