The results of the 2024 UAE Investor Pulse Survey show a growing interest among investors in initial public offerings (IPOs) in the UAE. 84 of investors are willing to invest in future IPOs, which is higher compared to 2022 and 2023.
The study showed a high level of confidence in IPOs in the UAE as a whole. 71% of investors trust the book-building process - the process of building share order books. 73% of investors believe that companies with IPOs have been fairly valued over the past 3 years. Additionally, 67% of respondents noted the presence of two separate stock exchanges (ADX and DFM) as a favourable condition for investment opportunities.
Investors identified the main criteria for evaluating companies going public with an IPO as: profitability (41%), financial stability (31%), brand awareness (26%), revenue predictability (20%) and scalability of the business model (14%).
Investors also expressed desire to see the following in IPO companies:
- Transparency and effective communication;
- Growth strategy and plans for investing in organic growth;
- Experience and diversity in the board of directors, with a preferen...