Dubizzle Group postpones planned IPO in a rare move: Here's why

Dubai: Dubizzle Group has chosen to delay its initial public offering on the Dubai Financial Market, saying it will take additional time to evaluate the best moment to proceed with the listing.

The decision came just before the company was set to begin pricing its IPO — the stage where bids from potential investors are collected in what’s known as the bookbuilding process.

In a statement on Wednesday, Dubizzle said it will “assess optimal timing for the offering in the future.” The company also noted that since announcing its Intention to Float, it had received “strong engagement and interest from investors” reflecting its market leadership, profitability, and growth prospects in both the UAE and Saudi Arabia.

“Dubizzle Group remains focused on executing its strategy of growing its highly profitable UAE business and expanding its footprint in Saudi Arabia,” the company reiterated.

Mixed IPO debuts

The decision follows a string of mixed IPO performances in the UAE. Shares of Alec Holdings PJSC have dropped more than 6% since their debut last week, while Talabat Holding Plc and Lulu Retail Holdings Plc, two of the country’s largest listings over the past year, continue to trade below their initial offer prices.

Even so, Dubizzle’s move stands out in a region that has become one of the busiest for listings. Since 2022, companies across the Middle East have raised close to $50 billion through public offerings, underscoring investor appetite for regional equity markets.

The group operates a network of classifieds platforms across the Middle East and North Africa, with the UAE accounting for roughly 89% of its revenue. Dubizzle entered the Saudi market in 2024, part of its broader push to expand regionally.

Prosus NV, one of the world’s largest tech investors, backs the company. Dubizzle had been working toward a public offering since 2023 after securing $200 million in funding in 2022 from a consortium led by Affinity Partners, the investment firm founded by Jared Kushner.