Greenfield IPOs hit as SCA considers ban on listings

Dubai Parks and Resorts, which floated on December 9, fell 4.3 per cent, while Marka, which floated on September 24, shed 2.9 per cent.
Rendering of the Dubai Parks & Resorts Riverpark development by Meraas. Courtesy Meraas
Rendering of the Dubai Parks & Resorts Riverpark development by Meraas. Courtesy Meraas

Greenfield IPO stocks were punished after the Securities and Commodities Authority said it was considering a ban on new listings of start-ups.

New listings of start-ups will be permitted only if they “intend to operate in an industry not represented on the UAE’s stock exchanges, and in an area of strategic importance to the economy”, Bloomberg News reported.

Dubai Parks and Resorts, which floated on December 9, fell 4.3 per cent, while Marka, which floated on September 24, shed 2.9 per cent.

Amanat Holdings, an investment company focused on health care and education, rose 0.36 per cent.

Shares in Dubai Parks have lost 20 per cent of their value since the company’s flotation, while Amanat shares have fallen by 16.5 per cent. Marka’s shares are trading above their IPO value. All three stocks are listed on the Dubai Financial Market.

The Abu Dhabi Securities Exchange (ADX) and the DFM were the worst-performing among Middle Eastern bourses on Monday.

The ADX closed down 1.15 per cent, while the DFM fell 1.22 per cent, wiping a combined Dh4.03 billion off the exchanges. Both indexes have largely reversed year-to-date gains.

On the DFM, 19 stocks fell and four gained, while on the ADX, 20 stocks fell and eight rose.

On the ADX, Asmak rose 12.8 per cent. The company belatedly released its third-quarter financials on December 22, which indicated that disposal of subsidiaries was set to lead the fish farmer to its highest profits in several years.

abouyamourn@thenational.ae

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Published: December 29, 2014 04:00 AM

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