Dubai Financial Market proactively supporting companies looking to go public

This view is based on encouraging signs from the market participants, as an increasing number of private businesses are considering to tap into the financial markets, in addition to the resurrection of pending IPO plans from the 2008 pipelines, all of which reflect the huge potential in the IPO sector.

Speaking in a panel discussion titled 'What will it take to bring IPO's back?', on the first day of the conference, Fahima Al Bastaki, Senior Vice President, Market Development Division, Dubai Financial Market said, "We are encouraged about the prospects of the IPO sector as private businesses in general are increasingly aware of the importance and benefits of going public. Tapping into the financial markets through IPO's will secure the needed finance for these companies to expand their operations via a cost effective channel compared to debt instruments."

"Based on our experience and the ongoing dialogue between DFM and the business community, we can see that many companies are considering to take advantage of this effective option, given the success of the IPO's that have been listed on DFM during the last few years. Consequently, DFM is committed to guide interested companies on the regulatory and procedural aspects of going public. Recently we launched the 'Guide to Going Public', which is a step by step explanation of the IPO process. The guide has received a positive response from IPO advisors in particular and the business community in general as hundreds of copies have already been requested and distributed,"

Al Bastaki added.

"During the last few years we have seen a greater number of private companies adopting corporate governance best practices and a more transparent approach, which makes them an ideal potential for listing. In addition, the regulatory authority is moving forward with new regulations on pricing mechanism and book building in a drive to upgrade the soft infrastructure. At DFM we think that developments in the business side and the regulatory side will play a major role in the revival of the IPO sector," Al Bastaki said.

At the DFM exhibition stand in the MEED Middle East Capital Markets Conference, dedicated DFM Listing's experts were available to handle inquiries from the delegates and provided guidance for companies looking to go public.

"DFM will continue the strategy to be proactive in terms of attracting new listings as well as to provide value added services to its listed companies, such as roadshows, Investor Relations tools, customized information of its shareholders, all of which brings them closer to the international investors, analysts and industry consultants," Al Bastaki concluded.