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DFM shares up 135% on first day's trading
Shares in the Dubai Financial Market Company closed 135% up today, in what was a 'fairly active' first day of trading.
DFM shares closed at AED 2.35 a share, up from AED 1.35, and - with transactions worth AED 851,842,459 - was by far the most actively unit traded on exchange.
The overall DFM index closed down a fraction, however, with shares in Arig, Mazaya and Shuaa Capital hit hardest.
DFM boss Essa Kazim told ArabianBusiness.com that share trading was 'fairly active' during the day.
Kazim also said that the DFM expects more listings over the next year. "There's great interest from regional companies," he said.
He denied that the listing would make a possible merger with the Abu Dhabi Securities Market or the Dubai International Financial Exchange more likely.
"There are no talks going on between us and them," he said.
However, the DFM's new accountability to shareholders will mark a fundamental shift in the way the company operates, said Kazim.
"We are a public company now, so the board will look into the interests of the shareholders. The mindset is different."
Possible changes include stricter corporate governance and a closer relationship with the Emirates Securities & Commodities Authorities (ESCA).
The listing of Dubai Financial Market Company shares - on the DFM itself - follows the oversubscribed initial public offering of part of the exchange in November last year.
The landmark AED 1.6 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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