Nasdaq Dubai said on Monday it will add Emaar Development to its futures market as soon as the company lists its shares on Dubai Financial Market (DFM) following its initial public offering (IPO).
The listing is expected to take place on Wednesday.
Investors will be able to trade futures on Emaar Development in order to take a position on the likely movement of the share price, making use of leverage to magnify the financial outcome of their futures trades by several times their initial investment, Nasdaq said in a statement.
Shuaa Capital will make a market in Emaar Development futures to facilitate liquidity, it added.
The sale of shares in Emaar Development is valued at AED4.82 billion making the IPO the largest in the country since 2014.
The company will join 13 other UAE-listed businesses already on Nasdaq Dubai’s equity futures market, which offers one-month, two-month and three-month single stock futures and has expanded rapidly since it opened in September 2016.
Hamed Ali, CEO of Nasdaq Dubai, said: “The launch of futures on one of Dubai’s leading property companies as soon as it lists demonstrates that Dubai’s capital markets infrastructure is working efficiently and responsively to meet the needs of investors.
"Emaar Development adds further depth to Nasdaq Dubai’s futures market as a growing range of investors make use of the platform to take a position on the future share price, including the ability to make gains when underlying shares are falling as well as rising.”
More than 2.9 million contracts have traded on the futures market since inception, with Emaar Properties the most highly traded by value followed by Union Properties and DXB Entertainments.
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