A new platform launched by Dubai’s stock exchange aims to make it easier for private companies to raise capital.
Dubai Financial Market on May 1 unveiled ARENA by DFM, a platform for initial private offerings that will allow private companies such as family conglomerates, small- and medium-sized enterprises and businesses at various growth stages to access capital through equity and debt assets. There are also plans to introduce additional asset classes, the exchange said in a statement.
Venture capital firms will also be able to sell private market shares on the platform, “thus establishing a previously unavailable liquidity pool,” the statement said.
Companies that list on ARENA can choose to limit investor access to their shares, opting for institutional investors, employees only, or family and founding members, which the exchange said offers “a unique pre-IPO listing option.”
ARENA will operate on technology provided by Nasdaq Inc., according to Bloomberg.
“The announcement of ARENA marks a pivotal moment in DFM’s commitment to providing issuers with a transparent and streamlined avenue for capital raising,” Hamed Ali, CEO at DFM, said in the statement. “The platform combines the advantages and efficiency of direct listing with the DFM’s diverse investor base and capabilities. Additionally, it enables investors to easily access private investments in the UAE's most promising companies and brands, unlocking investment opportunities that were previously inaccessible.”
