DUBAI, -- Nasdaq Dubai and Jebel Ali Free Zone (Jafza) have explained to Jafza-based companies how they can raise capital for growth through an initial public offering, IPO.
IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be made by large privately owned companies looking to become publicly traded, according to Investopedia.
Senior executives of a select group out of the more than 7,000 companies operating in Jafza attended the seminar, at which Nasdaq Dubai as well as Emirates NBD Capital and Al Tamimi law firm gave presentations.
The workshop followed Jafza's announcement last month that it has introduced new regulations to enable companies to carry out a stock exchange listing.
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World and Chairman of Ports, Customs and Free Zone Corporation, said, "We are committed to providing free zone companies with a legal environment that enables them to grow and prosper, including creating access to new capital-raising opportunities. We will further strengthen our strategic collaboration with Nasdaq Dubai for the benefit of a wide range of companies active in a variety of industry sectors."
Hamed Ali, Chief Executive of Nasdaq Dubai, said, "Jafza hosts many dynamic and thriving businesses that may benefit from raising further capital to expand and reach their full potential. We look forward to learning more about their needs and how we can help them carry out an IPO on the international exchange in their own region, which will provide them with worldwide visibility as well as a global and regional investor base."
Ahmed Al Qassim, CEO of Emirates NBD Capital, said, "We are honoured to host this prestigious event and discuss with businesses their plans for future growth. Given Emirates NBD Capital's experience and regional market depth, we'd like to showcase the various options free zone entities have, to grow their business and access capital."
Ahmed Ibrahim, Head of Equity Capital Markets at Al Tamimi and Company, said, "The introduction of the new regulations, which allow Jafza companies to convert to a public company along with the pragmatic approach of Nasdaq Dubai will unleash a new breed of listed companies, will certainly enhance the market's liquidity. Now Jafza companies have an unprecedented route to go public via an international recognised stock market platform."
Companies can carry out an IPO on Nasdaq Dubai by listing as little as 25 percent of their shares, allowing owners to keep control of the business. They need a market capitalisation of only 10 million US Dollars or above, allowing a wide range of businesses to utilise the exchange as a listing venue.
Source: Emirates News Agency