Secondary listings on the Abu Dhabi Stock Exchange (ADX) are attracting increased interest among Emirati private and family businesses due to new exchange regulations, according to a leading developer.
New Abu Dhabi Stock Exchange regulations are attracting more international investors, improving fair price discovery and improving transparency and levels of disclosure, according to Dr. Faisal Ali Mousa, Chairman of Fam Holding, a leading property developer based in Sharjah in the UAE. Fam Holding will soon be listed on Abu Dhabi’s “Secondary Market”, which has recently been renamed “Growth Market”.
Growth market ADX, with a market capitalization of Dh62 billion, recorded a “robust performance” in 2021 with the value of shares traded exceeding Dh16 billion, while the total number of companies listed on the market went to 13.
ADX comprises two markets. The primary market is where investors buy and sell securities they already own after the company has sold its offering in the primary market; while ADX’s second market (Growth Market) is part of ADX’s existing infrastructure for listing private companies where investors can buy and sell private company securities.
The Growth Market, which replaced the Second Market, created in 2014, offers companies access to a large investor base, key support from the ADX on investor engagement and an opportunity to improve their corporate image. brand. The marketplace will allow companies to begin their capital markets journey with companies capable of listing shares directly on the stock exchange, without the need for an IPO. This ecosystem is structured to help them drive their growth while gaining the experience of having their shares publicly traded with the wider associated benefits such as access to capital and funding, improved governance and increased liquidity for shareholders.
Fam Holding will capitalize on the wave of IPOs in the second largest stock market in the Middle East, allowing it to embark on a growth phase that will transform it into a larger and more international player in the sector. real estate.
Founded in 2009, the property developer has an investment portfolio worth MAD 2 billion and 5,750 residential apartments in the UAE.
“Listing on the ADX Growth Market is a sound option for private and family businesses with strong positions and significant growth potential as it allows them to grow their businesses and businesses faster, in preparation for listing on the primary market at a later stage,” Ali said. Musa.
In response to the growing number of private and family businesses seeking to list their shares on the market, the UAE’s secondary market has recently seen tremendous momentum, he said.
This is a result of the financial market’s efforts to broaden investment opportunities by increasing the number of listed companies and providing more options to investors, he added.
Following its transformation into a private joint-stock company with a capital of MAD 50 million and obtaining the initial authorization for listing on the ADX, Fam Holding has announced its intention to list its shares on the market in ADX growth. — [email protected]
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