Recent Shares On Dubai’s Markets Are Trading Below IPO Price

Dubai’s initial public offerings (IPO) revive the trading volumes and help to enhance the capital markets. The majority of the newly listed shares are trading below the IPO prices. The private list operator Taaleem holdings dropped 13% on its trading debut after raising $204 from IPO. Taleem has completed its book building and public subscription process for  IPO on the Dubai  Financial Market.

Taaleem is one of the largest K 12 premium educational providers in the UAE which has been listed on the Dubai Financial Market (DFM). The main intention of the company is to use the proceeds from the offering to expand its K-12 segment through the potential roll-out of four new premium schools in Dubai and Abu Dhabi to meet the growing interest and demand for high-quality K-12 education in the UAE.

Taaleem Is The Most Recent IPO Stock To Decline On The Market Debut

Because of the increasing interest rates, roaring inflation, and grim economic overlook, Europe has plunged share sales for two decades. The Middle East applied its tactics to escape from the business turmoil and attracted investors from all over the world to the Middle east.

Due to the increasing oil rates, both China and the US are in trouble and the business and trading sector is facing more challenges. The decline in oil prices and tough competition from America and China has resulted in the setback for Dubai markets as an attractive investment. This has subsequently affected the IPO of the Emirate of UAE to fall short.

Marina Zavolock wrote in a note that “ After an exceptional year for the Middle East outperformance, we see limited 2023 upside on shifting global and local tides”. The UAE has come up with the most attractive strategies to build a business and trading growth which made UAE unique among Middle Eastern countries. 

Hasnain Malik, a strategist at Tellimer in Dubai, wrote that according to the global scenario, Dubai’s listings are not immune from when the global equities and oil prices have been weekend.

The Dubai government is listing as many entities to boost the size of trading. “Dubai’s recent oversubscribed  IPOs may have seen the exit of retail investors on speculating on quick returns and their replacement by an institutional base which is pickier about valuation,” wrote Hasnain Malik. 

On Monday, Morgan Stanley cut their interpretations for middle east entities including Saudi Arabia and Kuwait in the case of trade marketing.

Maria Zavolock, one of the analysts, wrote that “After an exceptional year for Middle East outperformance, we see limited 2023 upsides on shifting global and local tide”

When compared to other countries’ stock marketing and business in the world, the Middle East has a strong structure and attractive valuation. Dubai Electricity and Water Authority PJSC have an IPO price of AED 2.48 and the highest trading price of AED 2.88 according to the valuation in April 2022, the latest listing of IPO, Taaleem Holdings PSC has an IPO price of AED 1.33 and the highest trading price of AED 1.39 and last traded was AED 1.33 in the valuation of November 2022.

The coming year of 2023 is not a promising time in contrast to the current year when the Middle East in general and UAE or Dubai, in particular, has been doing exceptionally well.