(Bloomberg) —
A new platform founded by entrepreneur Faisal Belhoul is planning an initial public offering in Dubai by the end of this year to invest in technology firms.
Dubai Digital Investment Co.
aims to raise 1 billion dirhams ($272 million) from the listing, Belhoul told Bloomberg in an interview. “We’ve been granted permission by the local authorities to launch a greenfield investment company that focuses on the technology sector,” he said.
Belhoul, vice-chairman of the Dubai Chamber of Commerce & Industry, was previously involved in the IPO of Al Noor Hospitals Group in London in 2013 and the share sale of another healthcare and education firm in Dubai a year later.
With his latest venture, he plans to invest in regional and global technology opportunities alongside VC firms and founders.
That also fits in with Dubai’s ambitions to become a major technology hub.
Belhoul said the greenfield listing will allow retail and individual investors to gain exposure to technology companies.
Many of those smaller investors are otherwise unable to buy into tech companies because the average investment size is too big, he said.
Greenfield listings were popular in Dubai about a decade ago, but have since faded.
The city’s last such IPO, healthcare and education investment firm Amanat Holdings PJSC, was also helmed by Belhoul.
The stock dropped 20% on debut in 2014 and still trades below its offer price. Retail and dining company Marka, which raised $75 million from a greenfield IPO in 2014 and never reported a profit, wound down in 2019.
Dubai Digital’s listing would come amid signs of waning demand for new shares sales in the Middle East.
While the region just clocked its best first half for IPOs on record, spurred by high oil prices and equity inflows, local stock markets have plunged from peaks in May.
The firm’s plans to seek opportunities in technology also coincide with a rout in that sector, with investors turning away from what they see as overpriced assets.
There are others eyeing bargains in the sector, though — Abu Dhabi’s Mubadala Investment Co. is defying the rout in valuations to invest in technology-focused businesses.
“The current adjustment in valuations makes it a very attractive entry point for any investor focusing on the tech space,” Belhoul said.
“We believe the market conditions have only made our strategy more compelling.”
Read More: NYSE Pitches US Listings to Gulf Tech Firms Amid Global Selloff
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