At the second edition of the MENA Capital Market Summit, Dubai Financial Market (DFM), the region’s leading financial market, unveiled its flagship initiative – ARENA by DFM - an innovative platform for Initial Private Offerings.
Designed to catalyze growth opportunities for both companies and investors, DFM Arena represents a pioneering approach to capital raising and investment within the MENA region.
It provides a platform for a wide range of private companies, including family conglomerates, Small and Medium Enterprises, and businesses at various growth stages. Through this platform, companies can access capital through diverse assets including equity and debt with plans to introduce additional asset classes. Additionally, venture capital firms can expand their investor base by selling private market shares, thus establishing a previously unavailable liquidity pool.
Additionally, privately listed companies on ARENA will have the option of limiting investor’s access to institutional investors, employees-only, or family and founding members, offering a unique Pre-IPO listing option.
For companies seeking to raise over AED 35 million, ARENA offers cost-effective access to an extensive network of investors and fosters a collaborative approach with transparency throughout the process. Serving as a regulated alternative to conventional financing routes, ARENA empowers private enterprises to access capital markets directly and engage with DFM’s purpose-built book-building process. With streamlined offerings, including memorandum review and timelines, issuers can significantly reduce transaction costs.
For investors, DFM Arena provides exclusive access to DFM private market investments, including early-stage growth opportunities to diversify their investment portfolios.
DFM's CEO, Hamed Ali, underscored the significance of the ARENA initiative, marking a milestone in DFM's commitment to transparent and streamlined capital raising. ARENA merges direct listing advantages with DFM's diverse investor base, offering access to private investments in UAE's promising companies. This unlocks previously inaccessible investment opportunities, enhancing the funding ecosystem for growth companies and fostering a vibrant and inclusive investment environment. ARENA, powered by technology, streamlines processes like due diligence and settlement, fundamentally reshaping investment accessibility and efficiency.
News Source: Dubai Media Office
