The Abu Dhabi IPO Fund seeks to prepare 3 initial public offerings in the hospitality, technology, banking and currency trading sectors with the aim of listing them by the end of next year or early 2025 on the Abu Dhabi Securities Market.
Basil Al-Khawaja explained that the issue of the initial offering is expensive for companies, and therefore we bear the burdens of the consultants and auditors working to qualify these companies.
He pointed out that one of the authority’s requirements for listing is to look at the governance and sustainability system, how to make decisions, and the company’s sustainability in a general way, according to Al Arabiya channel.
The Abu Dhabi Securities Market recorded the largest public offering during the second quarter of the year, as the IPO of ADNOC Logistics and Services raised $769.5 million, noting that this IPO witnessed the largest volume of demand in the world in a single deal so far in 2023, as the IPO was covered. 163 times the highest coverage rate for a public offering in the UAE.
In 2021, the Abu Dhabi government launched the Abu Dhabi IPO Fund, currently managed by the Abu Dhabi Investment Office, with a value of 5 billion dirhams, equivalent to $1.4 billion, as part of efforts to enhance the position of the Abu Dhabi Securities Market.
The fund aims to invest in 5 to 10 private sector companies annually, with a focus on small and medium-sized companies by targeting between 10% and 40% of the total shares available for subscription, thus helping them grow by providing the necessary liquidity through public offering.