The creation of a dynamic climate for the IPO sector as a result of recent regulatory reforms with New Commercial Companies’ Law at the forefront has provided private and family businesses with an attractive and encouraging environment to going public and listing according to capital markets and IPO experts. The new reforms such as lowering the minimum requirement of free float from 55% to 30%, the sell down of as much as 30% without issuing new shares and the book building mechanism offered further flexibility for companies considering to go public.
To shed light on this development, Dubai Financial Market (DFM) has organized its third IPO Forum titled; “Empowering growth within a dynamic IPO climate” on Monday, 9 November 2015. His Excellency Essa Kazim, Chairman of DFM as well as other senior executives from DFM have attended the event, which attracted 190 senior executives from 80 companies including leading private, family and government businesses as well as IPO advisors.
DFM regularly organizes this exclusive forum inline with its commitment to enrich dialogue amongst various stakeholders on opportunities, challenges and best practices in this sector. The forum has provided an effective platform to discuss recent developments, update businesses on the latest regulations and listen to the IPO advisors as well as senior officials of companies that have successfully implemented IPOs and listed on DFM.
The IPO sector is well positioned to regain its activity supported by the encouraging regulatory enhancements and the constant strong fundamentals of the national economy. In 2014, DFM has welcomed four IPO listings; however, this strong recovery was paused to date 2015 due to unfavourable conditions such as the drop in oil prices.
The IPO Forum addressed various IPO-related topics including UAE companies law and the adaptive approach shaping the IPO regulatory environment, Corporate Governance’s role in achieving sustainability of family businesses, fundamentals of building the right equity story, the top 10 most important decisions to consider while implementing an IPO and the role of managements in leading the transformation.
His Excellency Essa Kazim, Chairman of DFM said: “This forum has successfully stimulated dialogue amongst various stakeholders and shed light on the attractive and flexible regulatory framework for IPO sector in the UAE due to the introduction of the new companies’ law. The impressive turn out at this event clearly demonstrates that private and family businesses are increasingly realizing the importance of going public and listing. Numerous companies have invested a lot in order to prepare for such step as part of its strategy to achieve business sustainability as well as befitting from capital markets. As for now, some companies are being operated in a way that is much similar to a public company through the implementation of Corporate Governance, Investor Relations as well as separating management from ownership. The organization of this forum stems from DFM’s firm commitment to update private and family businesses on the most recent developments of this sector that represents the main stream to diversify investment opportunities available on the market and achieve the best possible representation of key economic sectors. Promoting this sector by attracting family and private companies has always been one of the main pillars of the growth strategy pursued by the DFM and applied successfully over recent years. It also contributes in achieving the objectives of Dubai 21 plan by further strengthening the Emirate’s position as a financial hub and a leading economy globally.”