ADX Secondary market encourages more listings by private businesses

FAM Holding to list its shares on the ADX's growth market
ADX Secondary market encourages more listings by private businesses

The new regulations adopted by Abu Dhabi Securities Exchange (ADX) are attracting more international investors, enhancing fair price discovery, and improving transparency and disclosure levels.

In response to the increased number of private and family businesses seeking to list their shares on the market, the secondary market of the UAE has seen impressive momentum.

The listing opens vast opportunities to expand the companies’ operations and businesses within their target markets.

Last month, the ADX has rebranded its secondary market, which connects investors with smaller privately-owned businesses, as the ‘Growth Market’ to encourage more listings on the emirate’s bourse.

The property developer firm FAM Holding announced plans to capitalize on the listing wave in the second-largest stock market in the Middle East. 

This comes following FAM’s conversion into a private joint-stock company with a capital of 50 million Emirati dirhams and receiving initial approval to list on the ADX.

This will allow the company to embark on a growth phase that will transform it into a bigger and more international player in the real estate business.

FAM owns an investment portfolio worth 2 billion Emirati dirhams and 5,750 residential apartments in the UAE

The ADX Growth Market, with a market cap of 62 billion dirhams, recorded a ‘robust performance’ in 2021 with the value of shares traded exceeding 16 billion dirhams, while the total number of companies listed on the market increased to 13.