ADX to see 13 more listings before year-end

New listings could include four companies from outside the UAE, while others may be government and family-owned businesses

The ADX, which is owned by state holding company ADQ, registered one of its most successful years on record last year as number of listings surged. Photo: ADX

Abu Dhabi Securities Exchange could host 13 more listings before the end of this year as the Arab world's second-largest stock market seeks to reach a market value of Dh3 trillion ($816.7 billion), a senior official said.

The new listings will include four companies from outside the UAE, while others will be government and family companies, Mohammed Al Shorafa, chairman of ADX, told Sky News Arabia on Monday.

The ADX, which is owned by state holding company ADQ, more than doubled its market capitalisation last year to a record Dh1.6tn – making it one of the best performing exchanges globally in 2021.

The Abu Dhabi bourse's market capitalisation was Dh1.8tn as of 1.53pm UAE time.

It is pressing ahead with its ADX One strategy unveiled last year to increase market liquidity and improve efficiency.

The market is up about 15 per cent since the start of this year.

Between 2020 and 2021, traded values (buy and sell) on the exchange increased by more than five times to Dh739bn.

Nine companies listed on the ADX last year. They include Adnoc Drilling, which raised $1.1bn in October, and Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, which reaped about $795 million.

The exchange has continued with listings this year, too. Abu Dhabi Ports Group raised $1.1bn from its share sale in February to expand operations globally and boost growth.

Abu Dhabi also unveiled a Dh5bn IPO fund last year to help encourage and support private companies to list on the local stock market.

The fund, overseen by the Supreme Council for Financial and Economic Affairs and managed by the Abu Dhabi Department of Economic Development, will invest in five to 10 private companies a year, with a focus on small and medium-sized enterprises.

Trading activity on the ADX has increase as a result of such initiatives. The number of investors who registered on the exchange last year increased eight-fold to 18,938, while trade volumes increased five-fold to Dh739bn, Abu Dhabi Media Office said this year.

The number of new institutional investors increased by an annual 77 per cent to 708.

Net foreign investment on the exchange reached Dh15bn in 2021, the highest level recorded by the ADX so far.

Meanwhile, the market value of shares owned by foreign investors in 2021 doubled to Dh156bn from the previous year, while those held by Emiratis also increased more than twice to Dh1.5tn from 2020.

Local investors accounted for 70 per cent of the ADX’s traded value, while foreign institutional investors accounted for 30 per cent.