Dubizzle Prepares for IPO: Key Insights for Investors
Dubizzle, a prominent online classifieds platform in the UAE, is preparing for its initial public offering (IPO). CEO Imran Ali Khan recently shared insights about the company’s growth strategy and future dividend plans, emphasizing a focus on expansion rather than immediate shareholder returns.
Growth Focus Over Immediate Dividends
During an interview with Gulf News, Khan clarified that Dubizzle will not distribute dividends right after its public listing. He stated, “We are a growth company. That’s where the focus is. It’s a tech company.” While immediate dividends are off the table, he hinted at a potential dividend policy in the medium term, although specific details remain undisclosed.
IPO Details and Shareholder Structure
The upcoming IPO will involve approximately 30.34% of Dubizzle’s total issued share capital, which includes both newly issued shares and existing shares sold by current shareholders. Notably, major shareholders such as Prosus, the largest stakeholder, and Affinity Partners are not selling their shares. In fact, Prosus is expected to invest additional capital in the offering, indicating strong confidence in the company’s future.
Financial Performance and Expansion Plans
Dubizzle has demonstrated impressive financial growth, with the UAE segment accounting for 89% of the group’s revenues. In the first half of 2025, the company reported $105 million in adjusted revenue, with adjusted EBITDA margins increasing from 31% to 46% year-on-year. The company has also expanded into Saudi Arabia, where it anticipates reaching cash flow positive status in the medium term.
Despite its ambitious growth plans, Khan noted that there is limited need for significant workforce expansion beyond the current team of over 2,000 employees. “We have already laid the foundation. We’ve done all the investment,” he explained, suggesting that the existing workforce is sufficient to meet future demands.
Technology and User Trust
Dubizzle employs more than 600 engineers across three tech centers, all working on a unified tech stack that supports 15 out of 16 consumer platform implementations. Khan addressed concerns regarding competition from social media platforms like Facebook and TikTok, asserting that these platforms cannot replicate the deep user experience required for high-ticket items like real estate. He emphasized the importance of market intelligence and historical data in building trust with users.
With over half a million verified users in the UAE, authenticated through government databases, Dubizzle has established a level of trust and safety that is challenging for social media platforms to match. Khan explained, “The network effects of a classifieds platform are very strong,” highlighting how sellers attract buyers and vice versa.
Upcoming IPO Timeline
The IPO process is set to unfold quickly, with the price range expected to be announced on October 23. Subscriptions will open on the same day, closing on October 29. Final pricing will be revealed on October 30, with the official listing scheduled for November 6.
FAQs
When will Dubizzle announce its IPO price range?
The IPO price range will be announced on October 23, 2025, coinciding with the opening of subscriptions.
Will Dubizzle pay dividends immediately after going public?
No, Dubizzle will not pay dividends immediately after its IPO, as the company is focused on growth. Future dividend policies may be considered in the medium term.
How many employees does Dubizzle currently have?
Dubizzle currently employs over 2,000 individuals, including more than 600 engineers working on its technology infrastructure.
Conclusion
Dubizzle’s upcoming IPO marks a significant milestone for the company as it seeks to expand its market presence while prioritizing growth over immediate shareholder returns. Investors can expect more details on pricing and subscription timelines in the coming weeks, setting the stage for Dubizzle’s future in the public market.
The IPO represents a pivotal moment for Dubizzle, as it aims to leverage its established market position to attract new capital for further expansion. The company’s strategy appears to be aligned with broader trends in the tech sector, where growth often takes precedence over short-term profitability. As the online classifieds market continues to evolve, Dubizzle’s ability to adapt and innovate will be crucial in maintaining its competitive edge.
Investors will be closely monitoring the IPO’s reception, particularly in light of the current economic climate and investor sentiment towards tech companies. The success of the offering could serve as a barometer for other tech firms considering similar paths to public markets in the region. As Dubizzle prepares for this transition, its focus on user trust and technological advancement will likely play a significant role in shaping its future trajectory.
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