Dubai's IPO stars deliver triple-digit gains as investors eye new listings

17/09/2025 03:08 AST

Shares of Salik, Dubai's road-toll operator, have surged more than 214 percent since their debut two years ago, driven by the extraordinary rally in state-backed companies that have transformed the Dubai Financial Market (DFM) into one of the region's hottest destinations for equity investors, according to a survey conducted by Emarat Al Youm.

Salik, listed on September 29, 2022, closed at Dh6.29 on Friday, September 12, compared to its IPO price of Dh2. The flotation raised Dh3.7 billion and drew record demand of Dh184.2 billion, 49 times oversubscribed.

Another standout has been Dubai Parking (Parkin), which listed in March 2024. The company's shares have climbed 180.5 percent to Dh5.89, up from a Dh2.1 IPO price. Its offering, which raised Dh1.6 billion, attracted Dh259 billion in orders, making it 165 times oversubscribed.

Dubai Taxi Company, which went public in December 2023, has seen a more modest but still striking gain. Its stock has risen 43.2 percent to Dh2.65 from its IPO price of Dh1.85. The IPO generated Dh1.2 billion in proceeds and received Dh150 billion in demand, 130 times oversubscribed.

Emirates Central Cooling Systems (Empower), the district cooling giant, listed in November 2022, has risen 29.3 percent, closing at Dh1.72 compared with its Dh1.33 offer price. The company raised Dh2.7 billion, with demand reaching Dh124.6 billion, 47 times oversubscribed.

Tecom Group, the operator of Dubai's business hubs, has advanced 25.8 percent to Dh3.36 since its July 2022 IPO, which was priced at Dh2.67. That sale raised Dh1.7 billion, attracting orders worth Dh36.4 billion, 21 times covered.

Finally, Dubai's flagship utility, Dubai Electricity and Water Authority (DEWA), the first of the new generation of government IPOs in April 2022, has gained 11.3 percent to Dh2.76, compared with its Dh2.48 IPO price. The landmark listing, which raised Dh22.3 billion, was 14 times oversubscribed with Dh315 billion in demand.

Together, the six government-backed IPOs, DEWA, Tecom, Salik, Empower, Dubai Taxi, and Parkin, have raised Dh33.2 billion, with cumulative investor orders surpassing Dh1.069 trillion, according to DFM data reviewed by Emarat Al Youm.

Analysts say the performance of these listings has been transformative. "Government IPOs have fundamentally reshaped Dubai's market structure and enhanced its attractiveness to global investors," said a financial analyst.

"The fact that every single company is trading above its offer price reflects the deep confidence in state-backed entities and in Dubai's economic policies."

The listings have not only boosted valuations but also diversified the investor base. Foreign investors accounted for 85 percent of new market entrants in 2024, helping the DFM index climb 27.1 percent that year.

In a sign of things to come, Alec Engineering and Contracting (Alec Holding), wholly owned by the Investment Corporation of Dubai, announced plans this week to list 20 percent of its share capital. The IPO will see one billion shares offered to investors between September 23 and 30, 2025, with the ICD retaining the right to adjust the offer size.