Abu Dhabi bourse to list big private firms to lure investors

  • Share via facebook
  • Tweet this
  • Bookmark and Share

The Abu Dhabi stock exchange is looking to list some of the emirate's large private companies to help boost liquidity on the bourse and ensure its benchmark index better reflects the economy, its chief executive said on Tuesday.

Roadshows for the listings are planned later this year in the Gulf and in London to attract more investors into Abu Dhabi, Rashed al Baloushi, chief executive of Abu Dhabi Securities Market (.ADX), told reporters.

"These companies are exactly like public joint stock companies but are wearing the hat of private companies. So why can't they be listed and the index will be more realistic," Baloushi said.

The new firms will be listed as Tier-2 stock without the need for initial public offerings (IPO), Baloushi said but did not give further details. Discussions were underway with the market regulator and he expected an approval to be given.

Baloushi did not say which firms were targeted for the listings but companies such as Manazel Real Estate, The National Investor, and diversified conglomerate Al Qudra are as large as publicly listed firms, yet their shares trade only on the unofficial over-the-counter market, according to a recent ADX study.

Investors from the United Arab Emirates currently make up more than 60 percent of trading volume in Abu Dhabi. The market index, largely driven by financial and real estate companies, gained 9.5 percent in 2012 and had a market capitalization of 249.5 billion dirhams ($67.9 billion).

As part of the initiative, the UAE Central Bank will become the main settlement bank from the second half of this year, taking over from the National Bank of Abu Dhabi, Baloushi said.

ADX also plans to offer registrar services to companies, such as organising annual general meetings and cash distribution, adding a new revenue stream for itself, Baloushi added.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: boomb

they need to join all the bourses in the emirate, it is the best option for the companies listed and the investors

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Features & Analysis
Events that moved the markets

Events that moved the markets

What, if anything, have we learnt from past crises that have...

Big Gulf sell-off fuelled by credit, lax regulation

Big Gulf sell-off fuelled by credit, lax regulation

New impetus to governments in the region to improve financial...

Why PE's back in vogue in the Middle East

Why PE's back in vogue in the Middle East

Confidence is returning to the Gulf’s private equity market after...

Most Discussed
  • 14
    Nakheel PR: The toughest job in Dubai?

    To be fair, anyone who still decides to invest their capital with Nakheel with all the data and track record available, deserves whatever comes their way... more

    Sunday, 29 March 2015 9:05 AM - Paul King
  • 8
    Drunk passenger who slapped air stewardess jailed in Dubai

    Really would help if some other commentators would understand the story and the airline.
    Flydubai doesnt give alcohol for free. They charge for it... more

    Sunday, 29 March 2015 9:07 AM - Ponder
  • 7
    Post traumatic stress?

    I always use couriers since my last experience at the DIFC post office. I never expect proper customer service, the usual sullen employees too busy with... more

    Sunday, 29 March 2015 12:54 PM - MT3
  • 14
    Nakheel PR: The toughest job in Dubai?

    To be fair, anyone who still decides to invest their capital with Nakheel with all the data and track record available, deserves whatever comes their way... more

    Sunday, 29 March 2015 9:05 AM - Paul King
  • 13
    Has Narendra Modi already lost the plot?

    Gaja, You said it in one sentence. Anil can't comment because Modi is an elected leader. He can't comment because India is the biggest democracy. While... more

    Saturday, 28 March 2015 10:24 AM - Rafi
  • 8
    Drunk passenger who slapped air stewardess jailed in Dubai

    Really would help if some other commentators would understand the story and the airline.
    Flydubai doesnt give alcohol for free. They charge for it... more

    Sunday, 29 March 2015 9:07 AM - Ponder