Dubai-based classifieds giant Dubizzle Group has postponed its much-anticipated initial public offering (IPO) on the Dubai Financial Market (DFM), announcing that it will “assess optimal timing for the offering in the future.”
The move came just hours before the book-building process was set to begin, marking a surprising pause for what was expected to be one of the UAE’s biggest tech listings of 2025.
Dubizzle Group and IPO Halt
According to multiple reports[1], including Gulf News, Reuters, and The National, Dubizzle had originally planned to offer around 30.3% of its total issued share capital, equivalent to 1.25 billion shares. The IPO included both newly issued shares and secondary shares sold by existing shareholders, meaning much of the proceeds were intended to provide liquidity to early investors rather than fund future expansion.
The company, which operates leading digital classifieds platforms such as Dubizzle and Bayut across the Middle East and North Africa, continues to hold a dominant position in its home market. In the first half of 2025 alone, Dubizzle reported adjusted revenue of about $105 million, with nearly 89% coming from the UAE. Its profitability remains strong, as the business recorded an adjusted EBITDA of approximately $48 million in H1 2025, almost double the figure from the same period last year.
The decision to delay, however, reflects broader uncertainty in the UAE’s capital markets. Analysts point to a string of mixed IPO performances in recent months. Shares of Alec Holdings PJSC have dropped more than 6% since their debut last week, while Talabat Holding Plc and Lulu Retail Holdings Plc—two of the largest offerings over the past year, continue to trade below their initial offer prices. Against this backdrop, Dubizzle’s management said the timing wasn’t right, emphasizing that “strong investor interest” remained but that the company preferred to wait for a more favorable market window.
What Analysis Believe
From a structural standpoint, the IPO was weighted heavily toward secondary share sales, roughly 84% of the total offer, indicating that most of the raised funds would have gone toward existing shareholders exiting their positions. Only about 15.7% represented new issuance for corporate growth. For that reason, analysts argue that the immediate post-listing price fluctuations should have had limited impact on Dubizzle’s operational prospects. The primary concern, therefore, appears to be market perception rather than financing needs.
The postponement also invites a closer look at valuation sensitivity and investor sentiment across regional tech listings. With its target valuation estimated near $2 billion, Dubizzle was set to test investor appetite for digital-first, asset-light companies in the Gulf. But in a climate of tightening global liquidity and cautious retail participation, the firm’s decision to hold off suggests a deliberate choice to protect valuation integrity rather than risk a muted debut.
Way Ahead
Looking forward, industry experts expect Dubizzle to revisit its IPO plan once volatility subsides. The company remains financially sound, with expanding footprints in Saudi Arabia and Egypt, as well as a diversified portfolio that includes Property Monitor, a UAE-based real-estate analytics platform. Analysts anticipate that a future relaunch will emphasize Dubizzle’s profitability, regional data-driven growth model, and integration potential within the UAE’s digital-economy strategy.
For investors, the postponement serves as both a cautionary signal and a sign of discipline. It highlights the challenges facing companies that rely on public-market sentiment rather than immediate capital requirements. As UAE exchanges continue to attract listings from logistics, retail, and energy sectors, tech IPOs like Dubizzle’s face the additional task of convincing investors that sustainable digital growth can deliver stable returns.
Ultimately, Dubizzle’s delay reflects prudence, not weakness. The company’s fundamentals remain intact. But the market is demanding a stronger appetite for tech valuations before the next major listing wave. When the offering resumes, it will be a critical test not only for Dubizzle but also for the broader trajectory of the UAE’s digital-economy IPO pipeline.
References
- ^ multiple reports (www.techjuice.pk)