By Anees Dayoub and Ben Flanagan
ADSM disagrees with market regulator over the shares of materials company on its first day of trading.
The Abu Dhabi Securities Market (ADSM) and the UAE market regulator have disagreed on the share price movement of the newly-listed Arkan Building Materials Company.
On Arkan's first day of trading yesterday, the Emirates Securities and Commodities Authority claimed that its shares fell by 5.14%, while the ADSM insisted that the price rose by 66%, according to today’s Al Khaleej newspaper.
The former figure was calculated on a base price of AED1.75, while the ADSM calculated a price increase based on the nominal share price of AED1.
Yeseterday Arkan shares opened at AED1.75 and rose to AED1.90, but quickly fell to AED1.58 before closing at AED1.66.
Arkan - which has a share capital of AED1.750 billion - is the 61st company to be listed in Abu Dhabi and the ninth company in the construction sector. Its IPO was fully subscribed and shares in the company can be traded by UAE nationals only.
Arkan was incorporated in January 2006 and is 51 per cent owned by the General Holding Corporation (GHC), a corporation wholly-owned by the government of Abu Dhabi.