A new survey by Edelman Smithfield reveals that 84 percent of UAE investors are likely to invest in future initial public offerings (IPOs).

The UAE Investor Pulse Survey 2024 provides insights into investor sentiment regarding the country’s capital markets.

The survey found that 73 percent of investors view firms that have undergone IPOs in the past three years as fairly valued. Additionally, 71 percent of investors expressed trust in the book-building process, a crucial aspect of IPOs.

Simon Hailes, Managing Director and Head of Middle East at Edelman Smithfield, said: “Our Investor Pulse Survey provides valuable insights into investor sentiments and expectations regarding the region’s capital markets. It’s encouraging to witness the growing investor confidence in the UAE markets and their strong appetite for UAE IPOs.

“However, to maintain this IPO momentum, it’s crucial for potential and existing issuers to prioritise transparent and consistent communication efforts. Our survey findings validate this, revealing that two-thirds of investors expect transparency and effective IPO communication from issuers to make informed decisions.”

The survey highlighted several key findings.

• 65 percent of investors prioritise transparent IPO communications for informed decisions.
• 67 percent consider the use of proceeds when evaluating potential IPO investments.
• 82 percent emphasise the importance of quality earnings in evaluating investment opportunities.
• 71 percent of investors prefer new issuers with organic growth investment plans.

Regarding sector interest, real estate (51 percent), tech (41 percent), and healthcare (33 percent) emerged as the top sectors for potential IPO investments.

The UAE contributed approximately 58 percent of 2023 IPO proceeds in the GCC.