IPO and Nasdaq Dubai
IPO (Initial Public Offering) and Nasdaq Dubai
We plan to list the Viva Valentia DMCC company on the Nasdaq Dubai listing.
What is Nasdaq Dubai?
Nasdaq Dubai is an international stock exchange in the UAE, part of the Dubai International Financial Centre (DIFC) and operating under the regulation of the Dubai Financial Services Authority (DFSA). Unlike the local Dubai Financial Market (DFM), Nasdaq Dubai is open to international investors and global companies, providing a platform for capital raising and expansion.
Advantages of Nasdaq Dubai for companies and investors:
- Access to international capital – The exchange connects investors from the Middle East, Europe, Asia, and America.
- Stable financial hub – Dubai is one of the world’s leading financial centers, offering a strong legal framework.
- High transparency and regulatory reliability – Nasdaq Dubai adheres to high international standards (IFRS, IOSCO regulations).
- Strong liquidity – Active trading ensures greater opportunities for stock liquidity.
- Opportunity for capital growth – Companies can easily raise additional capital through stock or bond issuance.
What is an IPO and how does it affect a company?
What is an IPO?
An IPO (Initial Public Offering) is the process through which a privately held company issues its shares to the public for the first time and lists them on a stock exchange. This allows the company to raise capital for expansion and accelerate growth.
How does an IPO affect a company?
- Capital raising – The company gains significant financing for expansion and funding new projects.
- Brand visibility – Publicly listed companies gain greater visibility and credibility.
- Stock liquidity – Shares can be freely bought and sold on the stock exchange, making the company attractive to investors.
- Market value increase – The company’s value and reputation can significantly rise following an IPO.
- Future capital raising opportunities – The IPO provides the company with the ability to issue additional shares in the future.
How does an IPO affect shareholders and stock prices?
- The IPO price is determined by the balance of investor demand and supply, based on the company’s financial performance.
- In the initial days and months, the stock price can fluctuate significantly, depending on market confidence, economic results, and the influence of investors seeking to capitalize on price increases from the IPO launch.
- If the company meets its growth goals, the stock price will likely increase in the long term, providing significant returns to investors.
- Dividend payments – If the company becomes profitable, shareholders may start receiving dividends.
Is it beneficial to participate as an IPO subscriber?
Why be an IPO subscriber?
- Early access to shares at lower prices that may rise significantly later.
- High growth potential – IPOs are often associated with high-growth sectors such as mining and green energy.
- Risk diversification – IPO stocks can be part of an investment portfolio, helping diversify risks.
- Capital gain opportunity – Many IPOs have generated 100–300% profit for investors in the first 3–5 years, though this may not be guaranteed.
Historical examples of successful mining company IPOs:
1. Barrick Gold (NYSE: GOLD, TSX: ABX) – 1983
- IPO price: $1.10
- 10 years later: $20 (1800% increase)
- Today’s market cap: $36 billion
- Strong growth due to increased demand in the gold sector and multiple gold mine acquisitions.
2. Glencore (LSE: GLEN) – 2011
- IPO price: $5.30
- 5 years later: $2.70, but over 10 years reached $6.50.
- Today’s market cap: $70 billion
- Glencore became the world’s largest mining company, despite the raw materials market downturn in 2015.
3. Lithium Americas (NYSE: LAC) – 2018
- IPO price: $6.00
- 3 years later: $30.00 (400% growth)
- Today’s market cap: $3 billion
- The boom in batteries and electric vehicles boosted lithium prices and the company’s value.
Here are some examples of the world’s 20 largest mining companies and their market value (2023):
| Company | Market Cap (Billion USD) | Key Resources |
|---|---|---|
| BHP Group | 150 | Gold, silver, iron, lithium |
| Rio Tinto | 120 | Aluminum, lithium, iron |
| Glencore | 70 | Cobalt, copper, nickel mining |
| Vale S.A. | 80 | Nickel, cobalt, copper |
| Barrick Gold | 36 | Gold, silver |
| Newmont Corporation | 45 | Gold, silver |
| Anglo American | 50 | Gold, silver, copper mining |
| Freeport-McMoRan | 60 | Copper, cobalt |
| China Shenhua Energy | 55 | Coal and precious metals mining |
| Norilsk Nickel | 45 | Nickel, cobalt, platinum |
| Teck Resources | 30 | Copper and zinc mining |
| Zijin Mining | 35 | Gold, copper, lithium |
| First Quantum Minerals | 25 | Copper and cobalt mining |
| Sibanye-Stillwater | 18 | Gold and platinum mining |
| Southern Copper | 50 | Copper, silver |
| Antofagasta | 20 | Copper, lithium |
| Lithium Americas | 3 | Lithium mining |
| Sociedad Química y Minera (SQM) | 22 | Lithium and potassium fertilizer mining |
| Albemarle | 30 | Lithium, chemicals |
| China Molybdenum | 25 | Cobalt, copper, molybdenum |
Conclusion
An IPO on Nasdaq Dubai will give our mining company access to global capital, supporting growth funding and the development of new projects. History shows that IPOs related to strong commodity markets have been very profitable for investors. The upcoming boom in electric vehicles, green technologies, and precious metals demand will ensure that mining companies capable of operating efficiently and raising funds on the stock market can multiply their value. Listing via Nasdaq Dubai ensures reliability, stability, and liquidity, which are crucial for attracting international investors.
The published information is not to be considered as a claim nor as an investment recommendation.