Abu Dhabi Securities Exchange (ADX) is anticipated to continue its growth momentum in 2024, including numerous new listings and offerings, its CEO Abdulla Salem Al Nuaimi said.
Speaking to the state news agency WAM, Al Nuaimi attributed the listings and offerings to ADX’s pivotal role in connecting investors with companies, fostering growth opportunities, and solidifying the UAE and Abu Dhabi’s positions as global investment hubs.
ADX had some notable listings in 2023, including ADNOC Gas, Presight AA Holding, ADNOC Distribution, and Investcorp Capital. The listing of Phoenix Group shares is scheduled for December 5. Pure Health Holdings announced its intention to conduct an initial public offering (IPO) followed by listing its shares on ADX in December 2023, subject to regulatory approvals and legal procedures.
Countries in the Gulf have experienced a sharp rise in IPOs over the past few years. Companies in the region raised over $22 billion through IPOs in 2022, accounting for more than half the total for the wider Europe, Middle East and Africa region (EMEA). In the second quarter of 2023 alone, there were 35 IPOs in the EMEA, with around 42% of EMEA’s year-to-date proceeds coming from companies in the UAE, according to the New York-based Skadden Foundation.
ESG index
ADX on Tuesday launched its first Environmental, Social, and Governance (ESG) benchmark index ahead of the COP28 summit
The FTSE ADX ESG Screened index has been developed in collaboration with FTSE Russell. The index is designed to provide investors with a transparent and tradable ESG benchmark based on screening criteria and a comprehensive methodology that ranks a company based on its ESG scores.
The ESG index will initially include 24 companies listed on the ADX market and constituents of the FTSE ADX General Index. It is designed to measure a company’s relative ESG performance, commitment, and effectiveness factually and transparently, based on the publicly reported data across several themes, including emissions, environmental product innovation, human rights, shareholders, and others. It will be measured on an annual basis.
Based on comprehensive criteria, the index measures the adoption of best governance, social responsibility, and environmental practices by listed public companies on ADX.
