According to a renowned developer, secondary listings on the Abu Dhabi Securities Exchange (ADX) are generating greater interest among private and Emirati family firms as a result of the bourse’s new policies.
According to Dr Faisal Ali Mousa, Chairman of Fam Holding, a Sharjah-based leading real estate developer in the UAE, the new laws in the Abu Dhabi market will attract more international investors, facilitate fair price discovery, and increase transparency and disclosure levels. Fam Holding will list on Abu Dhabi’s ‘Second Market,’ which has been renamed the ‘Growth Market,’ in the near future.
With a market capitalization of Dh62 billion, the ADX Growth Market had a ‘strong performance’ in 2021, with the value of shares traded topping Dh16 billion and the total number of firms listed on the market increasing to 13.
ADX is divided into two marketplaces. The main market is where investors buy and sell securities they already own after a company has sold its offering on the primary market, whereas ADX’s second market (Growth Market) is a part of ADX’s existing infrastructure for listing private companies and allows investors to buy and sell securities from private companies.
The Growth Market, which succeeded the Second Market in 2014, gives companies access to a large investor base, as well as key support from the ADX on investor engagement and the chance to improve their brand equity. Companies will be able to begin their capital market journey by directly listing shares on the exchange, eliminating the need for an IPO. This ecosystem is designed to assist them in accelerating their growth while also obtaining the experience of having their shares publicly traded, as well as the additional benefits that come with it, such as more capital and finance, improved governance, and increased liquidity for shareholders.
Fam Holding will take advantage of the listing wave on the Middle East’s second-largest stock exchange, allowing it to enter a growth phase that will transform it into a larger and more international real estate company.
The property developer, which was founded in 2009, has a Dh2 billion investment portfolio and 5,750 residential apartments throughout the UAE.
“Listing on the ADX Development Market is a good option for private and family businesses with solid positions and significant growth potential since it helps them to develop their activities and businesses faster in preparation for a later listing in the principal market,” Ali Mousa said.
The UAE secondary market has recently experienced remarkable momentum as a result of an increase in the number of private and family firms wanting to list their shares on the market, he said.
It’s the result of the financial market’s attempts to broaden investment alternatives by growing the number of publicly traded companies and giving investors more choices, he said.
Fam Holding announced intends to list its shares on the ADX’s growth market following its conversion into a private joint-stock company with a capital of Dh50 million and initial approval to list on the ADX.
