ABU DHABI – The Abu Dhabi Securities Exchange (ADX) is poised for continued growth and momentum in 2024, including numerous new listings and offerings, according to its Chief Executive Officer Abdulla Salem Al Nuaimi.
In an interview with WAM during the Environmental, Social, and Governance (ESG) index launch at Abu Dhabi Finance Week (ADFW) 2023, Al Nuaimi reflected on the robust activity of the Abu Dhabi market in 2023, maintaining the exceptional growth momentum seen in 2022.
He credited the listings and offerings to ADX’s crucial role in bridging investors with companies, fostering growth opportunities, and reinforcing the UAE and Abu Dhabi’s status as global investment centers.
Notable listings in 2023 included ADNOC Gas, Presight AA Holding, ADNOC Distribution, and Investcorp Capital. The Phoenix Group is set to list its shares on December 5th, while Pure Health Holdings has announced plans for an initial public offering (IPO) and a subsequent listing on ADX in December 2023, pending regulatory approvals and legal processes.
Al Nuaimi also underscored the ESG index launch’s alignment with the UAE’s preparations for hosting the United Nations Climate Change Conference (COP28). Developed in partnership with FTSE Russell, the index serves as a reliable benchmark for evaluating corporate governance, social responsibility, and environmental stewardship.
The index assesses adherence to best practices in governance, social responsibility, and environmental stewardship among ADX’s listed public companies. Al Nuaimi emphasized the index’s importance in fostering sustainable finance and motivating investments in companies committed to responsible governance, social accountability, and environmental practices.
Separately, Bassel Al Khawaja, the Advisory Head at Abu Dhabi IPO Fund (ADIPOF), confirmed the Fund’s involvement in three initial offerings across the technology, hospitality, restaurants, and financial sectors.
In his interview with the Emirates News Agency (WAM) during the second day of Abu Dhabi Finance Week, Al Khawaja anticipated that these offerings would be “coming to the markets by the end of 2024.”
He elaborated that one of the three offerings would involve a family business operating in the financial sector, specifically in foreign exchange and remittances, aligning with the Fund’s strategy to attract family-owned enterprises.
Al Khawaja emphasized the special significance of family businesses to the Abu Dhabi IPO Fund, highlighting their vital role in driving economic growth in the Emirate of Abu Dhabi. “The Fund is keen on launching more initial public offerings for family businesses and private companies,” he stressed.
The Abu Dhabi IPO Fund, as Al Khawaja noted, is an AED 5 billion entity. He added, “Its primary objective is to facilitate the transformation of privately-held companies into publicly-listed entities on the ADX.”
ADIPOF aims to invest annually in 5 to 10 private sector companies, focusing particularly on small and medium-sized enterprises (SMEs). The Fund targets acquiring between 10 and 40 percent of the total shares available for subscription. Additionally, it works closely with various local banks to leverage their expertise in the company listing process.