Abu Dhabi - Mubasher: Investors and traders in the UAE are awaiting a number of initial public offerings (IPOs) on the Abu Dhabi Securities Exchange (ADX).
The Abu Dhabi National Oil Company (ADNOC) recently announced plans to offer no less than 10% of its distribution unit, while Al Qudra Holding has approved listing its stocks on the ADX's secondary market.
Market experts believe that the IPOs will help attract more investments to the Emirati market.
The new offerings are low in risk, which should strongly attract foreign investors, said Wadah Al Taha, a board member of the UAE National Advisory Board and the Chartered Institute for Securities and Investments (CISI) in the United Kingdom.
ADNOC’s IPO will stimulate the market and encourage more companies to list their stocks in the UAE's bourses, especially the Abu Dhabi Securities Exchange (ADX), Al Taha added.
Meanwhile, financial analyst Issam Kassabieh from Menacorp said that the time was very suitable for such an IPO, as the market needs ADNOC’s operational weight.
The IPO will enhance the value of the ADX's energy sector, Kassabieh indicated, noting that it would be a balloon test in a way before the anticipated IPO of Saudi Aramco, the largest oil firm in the world.
Fadi El Ghattis, the CEO of MindCraft Consultants, said that the increase in the number of IPOs is mainly attributed to the recovery of oil prices, adding that the the stock market offers investors a number of options, which in return helps in strengthening the capital market.
