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DUBAI: While the UAE’s mega IPO is getting all the attention, its secondary market is getting into action too, with payments firm MBME set to list on the ADX Second Market on 17 April.
The Secondary Market — or the rebranded “Growth Market” — allows private companies to connect with investors. Emergency medical services provider Response Plus Holdings recently used this route to go public. (ADX launched a second market in 2014, and companies can go ahead with IPOs in the future when they are ready.)
According to the ADX portal, “growth markets offer companies access to a broad investor base, ADX support for investor engagement, and opportunities to enhance brand equity.”
In Dubai, Nasdaq Dubai offers private companies a similar option to access funding on a broader basis.
MBME’s connection to digital payments
MBME provides a range of payment-related services, including utility and telecom bills, through digital channels. The move to list on the secondary market also shows that UAE technology and digital companies are increasingly looking to leverage public investment to fuel their growth.
Most recently, Abu Dhabi-based G42 conducted IPOs for two entities, Bayanat Ai and Presight AI. By the way, on the first day of ADX listing, both companies recorded a three-fold price increase. There was also talk of another AI-focused entity — from another holding company — also considering a potential listing.
According to a Dubai-based fund manager, “Secondary markets are a real option for UAE tech entities that until now have sought private equity or institutional funding to meet their growth needs. MBME has the track record needed to attract a wider pool of capital Investors — if it can do that, it would make a lot of sense to list in a growth market.”
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