By: Bedour Alrai
Abu Dhabi - Mubasher: The market instability due to the drop in oil prices and austerity measures made some companies delay their plans to be listed on the UAE’s stock markets, according to analysts.
Initial public offerings (IPOs) in the Emirati markets were very limited in 2016, which were resumed in 2014 after being freezed for years after the financial crisis, while nine companies decided to increase their capitals through rights issues of offerings.
The Abu Dhabi Securities Exchange (ADX) didn’t see any new listings or IPOs in 2016, after listing Sharjah Group in the real estate sector in 2015.
Meanwhile, the Dubai Financial Market (DFM) saw the establishment of Orient UNB takafuk with a capital of AED 200 million, and the listing of Kuwait’s National International Holding (NIH).
Capital hikes through rights offerings in 2016 exceeded AED 6.6 billion ($1.8 billion), with DXP in the lead with AED 1.678 billion to finance a number of projects after raising the company’s capital to AED 8 billion.
In Ocotber, the general assembly of Emirates Islamic Bank approves the increase of issued and paid capital from AED 3.93 billion to AED 5.43 billion, while Al Ramz Corporation increased its capital from AED 10 million to AED 549.9 million, as well as Dubai Islamic Bank which increased its capital to AED 4.942 billion through the issuance of 988.4 million shares.
The CEO of ADX, Rashed Al Balooshi expects IPOs in the UAE markets to reach AED 1.2 billion by 2017.
Many companies are considering IPOs in ADX, such as Massar Solutions, Senaat, and Gulf Capital, while others are considering listing in the DFM, such as Al Shafar General Contracting, Daman Investments Al Habtoor Group, Emaar Hospitality, and Mawarid Finance.
The CEO of Careem also revealed that his company is planning an IPO in DFM, while Khaleeji Commercial Bank announced in May that it will list its stock in the Dubai market as well.
Translated by: Moslem Ali
