Secondary listings on the Abu Dhabi Securities Exchange (ADX) are witnessing an increased interest from private and Emirati family businesses, according to an industry expert.
The bourse’s new regulations are attracting more international investors, enhancing fair price discovery, and improving transparency and disclosure levels.
The chairman of Sharjah-based leading real estate developer FAM Holding, Dr Faisal Ali Mousa, shared these thoughts ahead of the firm’s listing on the Abu Dhabi’s Second Market, which has recently been rebranded as the ADX Growth Market.
Ali Mousa said: “Listing on the ADX Growth Market is a wise option for private and family companies with strong positions and significant growth potential as it allows them to develop their activities and businesses faster, in preparation for listing in the primary market at a later stage.”
Founded in 2009, the property developer currently owns an investment portfolio worth $544.5 million (AED 2 billion) and 5,750 residential apartments in the UAE.
FAM Holding aims to capitalise on the listing wave in the second-largest stock market in the Middle East, allowing it to embark on a growth phase that will transform it into a bigger and more international player in the real estate business.
Following its conversion into a private joint-stock company with a capital of AED 50 million and receiving initial approval to list on the ADX, FAM Holding announced plans to list its shares on the ADX’s growth market.
The ADX Growth Market, with a market cap of AED 62 billion, recorded a ‘robust performance’ in 2021, with the value of shares traded exceeding AED 16 billion, while the total number of companies listed on the market increased to 13.
ADX contains two markets: ADX’s main market is where investors buy and sell securities they already own after the company has sold its offering on the primary market; while ADX’s second market (Growth Market) is part of the existing infrastructure of ADX to list private companies where investors are able to buy and sell securities of private companies.
Mousa stated that listing in the Growth Market has many advantages for companies and individual investors.
“Listing and trading requirements – particularly those related to disclosure, transparency, and the adoption of the highest institutional standards – enhance investor confidence in publicly traded companies. They are also provided with excellent opportunities to invest in companies with solid foundations and high growth potential,” he added.
“We look forward to receiving the final approval for this listing soon, which allows individuals and institutions to invest in one of the fastest-growing real estate development companies in the UAE.”
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