DFM shares to start trading in early Feb

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Essa Kazim, Director General of DFM, addresses the press.

The Dubai Financial Market logo.

Shares in the Dubai Financial Market (DFM) will start trading in the first or second week of February 2007, according to a spokesman for the market.

They will trade on the DFM itself, following the oversubscribed initial public offering of part of the exchange in November last year.

The news was announced at the bourse's first-ever 'Constituent General Meeting', held on Tuesday evening at Dubai’s Emirates Towers.

An exact date was expected to be announced at the event, but this will be confirmed in around ten days' time.  The DFM spokesman told ArabianBusiness.com that this is because approval by Emirates Securities and Commodities Authority (ESCA) is still pending.

The spokesman also stated that the total cost incured by the DFM in undertaking the IPO was AED16m.

Approval of the listing itself, the election of the DFM board of directors, and approval of a shariah and fatwa board, were all announced as expected by Essa Kazim, Director General of DFM.

A statement later issued to ArabianBusiness.com confirmed the formation of "DFM Company".

"The CGM also approved DFM Company's articles of association and bylaws as well as the conversion of DFM to an Islamic stock market. Besides, the CGM approved the listing of DFM Company's stock on DFM and appointed Deloitte & Touche as its auditor," read the statement.

DFM Company's Board of Directors was elected at the meeting. It comprises: Mr Essa Abdel Fattah Kazim, Mr. Rashed Hamad Al Shamsi, Mr. Abdullah Majed Al Ghurair, Mrs. Ouhoud Khalfan Al Roumi, Mr. Mohammad Hassan Al Marzouki, Mr. Nasser Alshaali and Mr. Soud Ba'alawy.

Dr. Hussain Hamid Hassan will be Chairman of DFM's fatwa and shariah board.  Dr Hassan covers this role for several other organisations, including Dubai Islamic Bank, Sharjah Islamic Bank, Emirates Islamic Bank, MashreqBank, Aman Insurance, Amlak, Tamweel, and Dar Al Istithmar, London.

Other members of the shariah and fatwa board will include Dr. Mo'bid Ali Al Jarihi - who will be Executive Secretary - as well as Dr. Abdulsattar Abdul Karim Abu Ghada, Dr. Ajeel Jasim Al Nashmy, Dr. Mohammed Baroud Bakr and Dr. Mohammed Qassim.

The landmark AED1.6 billion IPO of the Dubai Financial Market raised around 126 times that amount, with excess funds having been returned to investors in December.

With an authorized share capital of AED 8 billion, comprising 8 billion shares of nominal value of AED 1 each, Dubai Government, the founder and main shareholder of DFM, offered AED 1.6 billion (US$ 435 million), representing 20% of the DFM share capital, through this IPO.

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