Dubai– Mubasher: Dubai Financial Market (DFM) has launched ARENA, an innovative platform for initial private offerings.
ARENA by DFM will support the growth of companies and investors in the Middle East and North Africa (MENA) region through capital raising and investment, according to a press release.
The platform will cater to a diverse array of private companies, including family conglomerates, Small and Medium Enterprises (SMEs), and businesses at different growth stages.
ARENA will facilitate access to various forms of capital, including equity and debt, with plans to introduce additional asset classes.
Venture capital firms can broaden their investor base by selling private market shares, and establishing a new liquidity pool.
Privately listed companies on ARENA have the option to restrict investor access, offering a pre-IPO listing choice.
For companies seeking over AED 35 million, ARENA provides cost-effective access to a wide investor network, promoting collaboration and transparency.
Serving as a regulated alternative to traditional financing, ARENA empowers private enterprises to directly access capital markets and engage with DFM's book-building process.
Additionally, DFM Arena grants investors exclusive access to private market investments, including early-stage growth opportunities, for portfolio diversification.
Hamed Ali, CEO of DFM, stated: "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.”
“ARENA acts as a catalyst to enhancing the funding ecosystem for growth companies, paving the way for a more vibrant and inclusive investment ecosystem,” Ali added.
It is worth noting that DFM logged net profits attributable to the owners of AED 89.57 million in the first quarter (Q1) of 2024.
