Markets

More dual listings expected as IPO trend continues

February 20, 2025, 4:10 PM

Analysts hope to see more companies listing in both Dubai and Saudi Arabia in the future

Eight IPOs in UAE in 2024
Analysts expect equal this year
Listings on Tadawul and ADX

Last year, eight companies launched initial public offerings (IPO) on the two main stock exchanges in the UAE, attracting more than $7 billion in investment. The same number could float this year and list in neighbouring Saudi Arabia, analysts say.

UAE-based technology company Alpha Data has already announced plans to list 40 percent of its capital on the Abu Dhabi exchange.

Etihad Airways, which is owned by ADQ, Abu Dhabi’s sovereign wealth fund, and Amanat Holdings are two other high-profile names tipped to offer shares in the first quarter. Later in the year, Five Holdings, a real estate developer, and Dubizzle, an online classifieds platform, may also sell shares.

Last year, food delivery service Talabat and supermarket giant Lulu Group together raised $3.7 billion, accounting for almost half of total IPO proceeds raised in that period. Lulu Group is listed on both the Abu Dhabi and Saudi stock exchanges.

Increasing the total value of companies on the UAE exchanges is a priority for the federal and emirate-level governments, as they seek to develop and diversify their economies, improve business integrity and attract foreign direct investment.

That includes seeking a greater share in emerging market indices.

UAE stocks make up only 1.4 percent of the total market capitalisation of all the companies in the MSCI Emerging Markets Index, a benchmark managed by Morgan Stanley Capital International to track the performance of large and mid-cap stocks in those markets.

Anita Gupta, head of equity strategy at Emirates NBD, Dubai's biggest bank by assets, said that almost AED1 trillion has been added to the market capitalisation in the country’s exchanges over the last four years. “We expect the same in the next three years,” she said.

The UAE has three principal stock markets: the Abu Dhabi Exchange, Dubai Financial Market and Nasdaq Dubai.

Ashish Marwah, chief investment officer at Abu Dhabi’s Neovision Wealth Management, said a total increase in market capitalisation can only come with “some serious new listings of large companies”.

Dual listings can also help. “We've already seen successful ones [IPOs] here, so you know that's going to continue,” Gupta said.

Americana Restaurants, the largest food service business in the Middle East and North Africa by number of restaurants, is listed on the both Abu Dhabi Securities Exchange and the Saudi Exchange.

Dubai-based Aster DM Healthcare has also announced plans to pursue an IPO and a dual listing in the UAE and Saudi Arabia but only in the next three to five years.