UAE’s ADX rebrands ‘growth market’ to boost private sector listings

The Abu Dhabi Securities Exchange (ADX) has rebranded its ‘Second Market’, a key equity market on the exchange that connects investors and privately-owned business.  The rebranding follows the unveiling of a new brand and logo for the exchange last year. The launch of the ‘Growth Market’ was announced with a bell ringing ceremony at ADX’s headquarters.

The Growth Market, which replaced the Second Market –  established in 2014 –  offers companies access to a wide investor base, key support from the ADX on investor engagement and an opportunity to enhance their brand equity.

Supporting the capital markets’ journey
The market will enable companies to begin their capital markets’ journey with companies able to directly list shares on the exchange, without the need for an initial public offering (IPO). This ecosystem is structured to help them boost their growth while gaining the experience of having their shares being publicly traded along with the wider associated benefits such as access to capital and funding, enhanced governance and increased liquidity for shareholders.

The Growth Market is open to businesses from any industry, including sectors as diverse as sports, transportation, wholesale trading and healthcare. Equally, both the listing and disclosure requirements have been specifically tailored to this group of companies, ensuring that governance and the process is robust and streamlined.

With a market capitalisation of Dhs62bn, the Growth Market delivered robust performance last year, allowing companies to enhance their market share and fuel their growth. The value of shares traded on the Growth Market in 2021 exceeded Dhs16bn, while the total number of companies listed on the market increased to 13.

Hisham Khalid Malak, Chairman of the Abu Dhabi Securities Exchange said: “The Growth Market is an integral part of the ecosystem that Abu Dhabi is building to nurture business, from start-ups through to maturity. Abu Dhabi provides one of the most business-friendly environments in the world, which has been enhanced by an accommodating legal framework and government initiatives to promote opportunities for the private sector. The Growth Market will provide confidence to owners of companies and investors that there is a clear and straight-forward pathway for companies to begin their capital markets journey in Abu Dhabi.”

Saeed Hamad Al Dhaheri, MD and CEO of Abu Dhabi Securities Exchange, said: “As we continue to execute on our ADX One strategy we endeavour to both reevaluate our existing offering and introduce new products and services which enhance connectivity between investors and companies looking for differentiated opportunities for growth. The Growth Market encapsulates our continued ability to meet both issuer and investor needs while also adding scale to our offering and growing exchange. By paving the way for companies to begin their capital markets journey, in a streamlined and less onerous manner, we open up numerous growth avenues for them to explore including facilitating a potential IPO on the Main Market in the future.”

ADX One
The relaunch of the Growth Market is part of the ‘ADX One’ strategy to enhance liquidity and increase the exchange’s market capitalization over the next three years.

Announced at the beginning of 2021, the ‘ADX One’ strategy comprises 22 strategic projects to encourage the listings pipeline, enhance corporate governance and introduce new products and services that meet the requirements of issuers and global investors

To be eligible for inclusion in the Growth Market, companies must convert to a private joint company, have at least two years of incorporation and records of audited financial statements, and list at least 5 per cent of their share capital.

In other news, ADX and FTSE Russel recently partnered to develop the FTSE ADX 15 Index, a benchmark blue chip measure that will support ADX’s recently launched derivatives market and the creation of exchange traded funds and other index-tracking investment vehicles.

Read: ADX, FTSE Russell benchmark blue chip index to launch on March 30