ADX to have new listing on second market in 2015

16/09/2015 06:13 AST

Abu Dhabi Securities Exchange (ADX) expects to have the third listing on its second market in addition to the two existing ones, its chief executive told Gulf News.

ADX has the National Investor along with Manazel Real Estate listed on the second market, a platform where current shareholders can sell stocks depending on their foreign ownership limit.

“The ADX introduced the second market for trading of private companies. This would give additional value to the ADX. We expect to see another listing before end of the year on the second market,” Rashed Al Balooshi, chief executive at Abu Dhabi Securities Exchange told Gulf News on the sidelines of an industry conference.

However, the exchange doesn’t have any IPOs in the pipeline, he added. On Monday, the exchange announced the listing of Sarjah Group company, bringing the total number of listed players to 66, making it the first company to be listed this year.

Balooshi said the exchange knows of many companies in touch with the authorities to go public.

“The process of the IPO starts with the company and they approach the right parties. We are very sure that there are companies talking to the department, with the authorities etc and them once we see the maturity of those companies to go public,” he said.

“We have the well developed infrastructure. Investors don’t need to go to bank to go to the IPO. We want to make the life of an investor very easy by making it available through iPads, iPhones etc. We are also wanting to make quick and easy transfer of money as far as IPOs are concerned,” he added.

Baker and Mckinseny study showed that IPOs worth $3 billion came to the market in 2014 in the UAE, however, in 2015, the IPO market witnessed a fall to $500 million.

However the consultancy expects market to revive in 2018, when IPOs worth $1.2 billion are expected to hit the market.

On launching new products, Balooshi said “We continue to plan to have more than one financial instrument. We would like to have more than equities. We would like to have rights issue. We want to strengthen the trading platform by way of ETFs. We could easily convince the issuers of bonds and sukuk on ADX.”

MSCI upgrade: Post the upgrade, the ADX has opened 560 new accounts of institutional investors in 2015, in addition to the 1,600 accounts in 2014.

“MSCI has been a solid point for the ADX. This has given us more exposure to the international investors. There has been a huge pumping of investments into ADX, which got reflected in the value traded,” he added. Total investors stand at 960,000 currently on the exchange.

“We have strong plans for 2016, we have replaced the trading system. We will have a new website by early next year. We are developing services that would enable the investors to invest on the go,” he said.

Gulfnews