London – Mubasher: Amman Stock Exchange (ASE) is intending to launch an initial public offering (IPO) upon completing the establishment of a shareholding company, revealed ASE’s CEO Nader Azar.
The statement came during an exclusive interview with Mubasher team on the sidelines of an investor roadshow currently held in London.
“We have not set a date yet for the IPO,” said Azar, “The suitable timing will be chosen after finalising the establishment of the company.”
In June, ASE received the approval of the Jordanian government on converting into a public shareholding company; a move that will allow access for the private sector in the bourse ownership.
“Converting ASE into a shareholding company is in the right track. All required procedures and laws amendments are being undertaken,” said the CEO.
He also added that the bourse management is currently setting a plan this year to boost the market performance and lure foreign investments.
Foreign investment accounts for nearly 50% of ASE total trading, with 37% for Arabs and 13% for non-Arab foreigners, according to the top executive.
Asked whether ASE may impose profit and dividends tax on investors, the CEO stressed that there is no plan for such a move as ASE needs to boost its competitive abilities.
“Currently 61.4% of ASE’s capitalisation is dominated by the financial sector, 20.4% by industrials and 18% by services,” said the CEO.
Amman stock market is capitalised at around JOD 17.86 billion ($25.1 billion) with 238 listed companies.
The top executive also stated that a new electronic disclosure system, which comes in partnership with New York Stock Exchange, is being implemented and will be launched by late 2017.
