DUBAI, April 7 (Reuters) – Middle East technology investment firm iMENA Group, which is partly owned by Abu Dhabi telecom operator e& (ETISALAT.AD), is considering an IPO in Abu Dhabi and is working with banks on it Deal, two sources told Reuters.
The firm invests in online and mobile businesses in the Middle East and North Africa, with companies such as Dubai car marketplace SellAnyCar.com, restaurant reservation app and online marketplace opensooq.com forming part of its portfolio.
If it goes ahead, it would be the first technology investment firm to offer shares to the public in the UAE.
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Aiming for a deal to close later this year, the company has selected First Abu Dhabi Bank (FAB.AD), Morgan Stanley (MS.N) and EFG Hermes (HRHO.CA) as advisors on the IPO , the sources said, declined to be named because the matter is not public.
iMENA, Morgan Stanley and EFG Hermes all declined to comment. First Abu Dhabi Bank and e& did not immediately respond to a request for comment.
Talks are still at an early stage and no final decision has been made, the sources said, adding that the company may decide not to proceed depending on the circumstances.
It’s still unclear how much the company wants to start with or how much it hopes to raise.
Startups have been encouraged to establish themselves in the UAE after a handful of successes by local tech companies as investors scout the Middle East for potential tech unicorns – privately held startups valued at more than $1 billion.
Anghami, a Middle East and North Africa-focused rival of Spotify and headquartered in Abu Dhabi, became the target of a so-called Special Purpose Acquisition Company (SPAC) and was listed on the Nasdaq stock exchange in New York earlier this year.
Careem, a Dubai-based Middle East and Asia ride-hailing app, was acquired by Uber for $3.1 billion in 2020, making it the largest exit for a startup from the region. Amazon acquired e-commerce marketplace Souq.com for $580 million in 2017.
Gulf issuers have raised $3.5 billion through IPOs so far this year, according to data from Refinitiv, outpacing European IPOs even as global markets remain volatile following Russia’s invasion of Ukraine.
Gulf markets are highly correlated with oil prices, where Brent crude is trading above $100 a barrel. Abu Dhabi’s main benchmark is up more than 18% so far this year.
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Reporting by Hadeel Al Sayegh; Edited by Jan Harvey
Our standards: The Thomson Reuters Trust Principles.
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