Dubai Financial Market (DFM) today announced that its "eIPO" platform, the sophisticated and efficient solution for IPO subscription directly linked with the receiving banks, has witnessed enormous turnout from investors in the UAE and other countries in the region and beyond during the IPO of Emaar Malls Group.
This success has been enabled by the platform’s multiple smart channels including a direct connection with the receiving banks, and through the iVESTOR card which has contributed to the efficient and swift implementation of the IPO as well as eliminated the common obstacles of the traditional subscription methods.
Electronic subscription has recorded a noticeable leap compared to the pilot launch of the platform during the previous IPO. The proportion of electronic applications jumped 10 times to 20% of the total number of applications, from 2% during the previous IPO.
Beside the system is being used efficiently by the 7 receiving banks respective branches in this IPO, Emirates NBD is the first bank that activated the alternative channels with the platform through ATMs and online banking as the close collaboration between the bank and DFM made these new channels available ahead of the Emaar Malls IPO. Subscription through smart channels is poised to achieve bigger leaps with more banks joining the platform over the coming period. DFM actively encourages banks to finalize the direct linkage with the platform and is providing them with the necessary support in light of the various benefits of the platform for investors and the receiving banks.
DFM has become the first exchange globally to provide this smart platform enabling investors to easily subscribe to IPOs through direct linkage with receiving banks as well as paying the subscription amount through ATMs, online banking and their iVESTOR Card which is highly secured and enable the swift refund of excess money, allotment and listing. Through the platform, investors can apply online, pay the required amount, and directly receive the excess funds to their iVESTOR Card, the effective solution developed by DFM which saves time and effort, decreases any risk of mistakes and ensures information accuracy, as well as offering potential investors the opportunity to view the IPO prospectus and summary in addition to the articles of association of the offering company.
Ali Al Hashimi, Executive Vice President, Head of Financial Services Division, DFM, said: “Emaar Malls IPO has shown very encouraging indications as far as investors’ tendency to utilize smart channels of DFM platform is concerned. This platform has provided investors with an effective and reliable solution that eliminated various hurdles commonly associated with traditional methods of implementing IPOs. Receiving banks can now directly process applications through the platform by entering a DFM investor number (NIN) and specify the subscription amount without filling in any additional data.”
“Having electronic applications accounting for as much as 20% of the total number of applications is very promising considering that only one of the 7 receiving banks has enabled multiple electronic channels linked with the platform, whereas this percentage stood at 2% only during the previous IPO”, Al Hashimi said.
Al Hashimi revealed that DFM is in discussions with many IPO receiving banks to finalize the arrangements of their direct linkage with the DFM platform, providing investors with additional smart channels during any upcoming IPOs.
“The DFM smart eIPO platform represents a quantum leap in receiving banks’ way of handling this procedure as it enables them to effectively process IPOs without the need for large numbers of employees as in the past, including the electronic subscription and payment through direct debit, ATMs as well as smart phone applications”, Al Hashimi concluded.