UAE’s online lister Dubizzle Group announces IPO in Dubai

The UAE’s Dubizzle Group has announced the plan to become a publicly listed company, a move set to become the country’s largest tech listing this year.

Dubizzle, an online classifieds platform, is owned by the Emerging Markets Property Group. It allows users to buy and sell goods, services, and property, primarily in the Middle East and North Africa (MENA) region

The company will offer 1.25 billion ordinary shares —representing just over 30% of the group’s post-offer capital — in its listing on the Dubai Financial Market (DFM). The Group intends to float approximately 30.34% of its issued share capital through its IPO.

It will include new shares issued by the company as well as the existing ones offered by current shareholders.

This is equivalent to a total of 1,249,526,391 shares, comprised of 196,114,887 new shares to be issued and sold by the company and 1,053,411,504 existing shares to be sold by the company’s selling shareholders.

The paid-up share capital of the company, upon the completion of the offering, has been set at AED 82.37 million, divided into 4,118,412,630 shares, with the nominal value of each share being AED 0.02.

As per the details of the IPO, the subscription for retail and institutional investors will open on October 23 and close on October 29, with the final offer price to be announced the next day. The allocation of shares and confirmations will take place on November 4, and trading is expected to begin on November 6.

Prosus NV, the company’s largest shareholder through its subsidiary OLX BV, has committed to invest $100 million in the IPO as part of the offering, reflecting Prosus’ ongoing long-term support of Dubizzle Group.

Imran Ali Khan, the CEO of Dubizzle Group, has said, “This IPO marks an exciting new chapter for Dubizzle Group. By welcoming a broader shareholder base, we are positioning the Group to accelerate growth, deepen our presence in the markets where we operate, and create long-term value for our users, clients, employees, and shareholders alike.”

The IPO is expected to be a challenge in a country where listings have been dominated by companies that offer high dividend yields. Globally, tech companies have struggled to raise funds and seen valuations plunge as high inflation and rising interest rates dented appetite for loss-making, high-growth firms.

Dubizzle Group, established in 2005, holds approximately 50% of the UAE real estate classifieds revenue market and 87% in the automotive classifieds segment.