Stock DFM Dubai market
Good to go - New investors trading on DFM has seen a significant increase as Dubai's IPO wave hit their mark. The target? Dh3 trillion in market cap. Image Credit: Ahmed Ramzan/Gulf News

Dubai: The three IPOs to date – and with a fourth listing next month – the operator of Dubai Financial Market (DFM) has the numbers to show for it. Total market cap is up 40 per cent to Dh575.5 billion at the end of September, and setting up the Dubai stock market with the stated target of a Dh3 trillion capitalization once the first set of government-owned enterprises complete their listings.

In recent months, DEWA, Tecom Group and Salik have listed, and Empower is up next. Total traded value on DFM is up 79 per cent to Dh69.5 billion.

At the end of 2021, market cap was at Dh411 billion. It was in November last year that Dubai announced its intent to broaden its capital markets and aim for Dh3 trillion in market cap.

“The number of new investors who joined the market during the first nine months has increased 41 times to 155,060 compared to 3,799 investors during the corresponding period in 2021,” said Helal Al Marri, Chairman of DFM co.

Investors have rushed into the market to participate in the continuous IPOs from leading enterprises that reinforced the depth and diversity of our market.

- Helal Al Marri, Chairman of DFM

Intense guessing game

After Empower, what next? Market watchers are caught in an intense guessing game as to which of Dubai’s next enterprise will go the public offer route. The Dubai school operator Taaleem is an obvious one, having already expressed an intent to do so. The talk is there could be a big one lining up before year-end.

Profit note

As for DFM Company, net profit at the end of September was Dh89 million against Dh38.1 million. Total revenue reached Dh237.8 million compared to Dh183.1 million the previous year. The latest top-line is made up of Dh173.3 million as operating income and Dh64.5 million in investment returns and other income.

According to Al Marri, "We have posted a strong set of results in the third quarter. Increasing investor interest and activity is testament to the dynamism and growth of Dubai’s capital markets. This is illustrated by the DFM being one of the most active listing venues globally right now."