Wio Bank, ADX partner to enable instant, digital IPO subscriptions

ADQ-backed Wio Bank has joined forces with the Abu Dhabi Securities Exchange (ADX) to facilitate initial public offering (IPO) subscriptions on the stock market.

The partnership allows the digital bank’s customers to instantly subscribe to UAE IPOs on the ADX via Wio’s upcoming personal banking mobile application.

The neobank said the fully digital service is part of the digital banking platform’s commitment to delivering fast and seamless experiences to its customers. The bank allows its customers to instantly and digitally create a national investor number on the ADX and apply for IPO subscriptions without any hassle, or paperwork.

The customers will also benefit from the option to apply for leverage at a competitive rate of up to five times the amount invested this added leverage empowers customers to increase their allocation of shares in an IPO.

Wio said it can instantly approve the leverage application, using its innovative digital platform and deep customer insights.

“The partnership has enabled us to streamline the process by removing the hassle of paperwork submission, providing our customers with immediate access to substantial investment opportunities through our upcoming personal banking application,” Jayesh Patel, CEO of Wio Bank.

“This collaboration is a great example of how we are leveraging Wio’s advanced technology and efficient financial management solutions to support our customers’ financial ambition and be part of their growth journey through innovative solutions.”

Founded in September 2022 to reboot banking and catalyse the growth of the UAE’s digital economy, Wio is built around three main capabilities: digital banking apps, embedded finance, and banking-as-a-service solutions.

Wio Business was the first banking application from Wio Bank to support and provide startups, freelancers and SMEs with access to simplified, seamless and full digital banking services seamlessly.  Wio Business provide these segments with the opportunity to scale with innovative beyond-banking services.

The digital bank plans to unveil its second banking application, Wio Personal, for retail banking customers later this year.

ADX IPO activity

Meanwhile, ADX is expected to receive at least eight IPOs this year after ADNOC Group pulled off the world’s biggest listing in Q1 2023. The state-owned energy firm’s maritime logistics unit ADNOC L&S soared more than 50 per cent on its trading debut on the ADX earlier in June after its $769m IPO drew overwhelming investor demand, with $125bn in overall orders.

The energy group raised $2.5bn from the listing of its gas business, ADNOC Gas, in March. The deal stood out for the region with the highest proceeds globally for the first quarter of the year.

The Abu Dhabi bourse accounted for 14 per cent of global IPOs in the first quarter of 2023, underscoring the growing strength of Abu Dhabi’s capital market.

Last year, the UAE market witnessed an increased flurry of IPO activity, with 11 listings fetching Dhs51.2bn, with total subscriptions reaching a staggering Dhs1.45tn.

ADX’s agreement with Wio Bank is expected to support the bourse’s strategy of continuing to leverage digital solutions to widen its investor base and enhance market liquidity.

Trading value on the ADX reached Dhs450bn in 2022, up 21.9 per cent from 2021, driven by increased listings, diversified product offerings and growing international investor participation. The benchmark FADX 15 Index gained 22.6 per cent in 2022, making it the best-performing index in the Arab world.