Subscribing to a UAE IPO? New DFM-Mbank deal makes it easier for investors
Dubai stock market operator ties up with Mbank to offer investors extra funding support
Dubai: Need funds to take part in the UAE’s next set of IPOs? Let DFM help you out.
The Dubai Financial Market has lined up an alliance with the digital-only Al Maryah Community Bank (or Mbank) to help investors tap funding support and subscribe to select IPOs.
Mbank provides the ‘IPO upgrade’ by offering these investors up to five times leverage based on provisions issued by the Central Bank of the UAE.
The feature provides flexible investment multiples, thus ‘allowing participants to increase their subscription amount by up to five times at a nominal fee’. This would help with a potential higher allocation when the shares are allocated.
“This enhancement is designed for seamless access in partnership with DFM, ensuring a hassle-free experience for all eligible investors,” said a statement.
Investors can source info on eligibility, minimum subscription requirements, and how to access the IPO Upgrade through the DFM app or by visiting the official DFM website.
“This initiative at Mbank aims to support local markets, attract more investment, increase market confidence, and maintain the integrity of financial transactions within the UAE’s dynamic financial sector,” said Mohammed Wassim Khayata, CEO at Mbank.
UAE IPOs of the recent past have seen sizeable retail investor participation, and many of them use bank loans to improve their chances for a higher stock allocation.
Mbank clearly is upping the ante with the promise of up to five times leverage, especially with more stock market floats on the horizon through 2025.