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DUBAI: Abu Dhabi’s ADX “growth market” is trying to grab some investor attention for itself, with digital payments firm MBME listing today (April 17) and Ethmar International Holding on May 1.
ADX’s growth market offers private companies the opportunity to connect with a broader investor base, primarily institutional investors. By selling securities, these companies have the opportunity to diversify away from banks, divest into private equity, and more.
“The presence of ADX accelerates our access to new capital and strengthens our position as a leading digital payments aggregator,” said Abdelhadi Mohamed, Managing Director of Abu Dhabi-based MBME. The company’s services include online bill payment and other services, which it now hopes to expand.
MBME has been a beneficiary as more and more payments – whether for “smart” government services, utility bills or activities such as shopping – are done online. MBME has been in operation for 15 years and “we want to deepen our presence in each of the seven emirates”, the MD added. “Going into a growth market gives us the opportunity to access capital from investors who have seen our track record.”
Growth Market Listing Requirements
- The minimum capital of the entity shall be AED 5 million, fully paid up. A company must have at least two shareholders and a maximum of 200 shareholders.
- According to the ADX website, the growth market is “particularly suitable for private and emerging companies investing and operating in the UAE or abroad, such as family businesses and limited liability companies seeking growth”. Startups and companies in the early growth stages are also encouraged to go public.
- The disclosure requirements and listing process are “less onerous” compared to the primary market. As such, it provides an “easier transition” for private companies seeking an eventual IPO.
- Once listed, the share price of ADX is determined solely by supply and demand.
Next – Ethmar
Ethmar International Holding is the next company to enter the growth market, confirming it will list on May 1. Prior to this, the entity – with interests in real estate, technology and energy services – had selected Ajman Bank as a strategic partner during the privatization delivery process.
Ali El Gebely, managing director and chief executive officer of Ethmar International Holding, said in a statement: “The UAE economy is an important hub of financial market activity in the Middle East, which is clearly reflected in the enormous economic prosperity.”
Response Plus takes the same approach
In September 2021, another Abu Dhabi company, Response Plus Holding, also chose a growth market to take the first step to attract wider investor attention. The move has indeed paid off, with the emergency medical services company now covering more markets and having several blue-chip clients, many of them in the oil and gas sector.
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