The Abu Dhabi Securities Exchange has adopted the first regulatory framework for companies incorporated for acquisition and merger purposes in the Gulf region; This will pave the way for the listing of the shares of these companies in the market during 2022.
The Abu Dhabi market said in a statement, today, Monday, that the adoption of the regulatory framework for acquisitions and mergers came after obtaining the approval of the Securities and Commodities Authority in the United Arab Emirates.< /p>
He explained that this framework is the first of its kind in the region, as it was developed by the Abu Dhabi Securities Exchange and the Abu Dhabi Department of Economic Development, in cooperation with legal and investment specialists from To draft regulations for companies incorporated for acquisitions and mergers, based on the US regulatory framework for companies incorporated for purposes of acquisition and mergers as a standard in addition to the relevant international regulatory frameworks.
He added that this regulatory framework will contribute to providing an attractive investment environment for international investors and provide them with broader prospects of unique growth opportunities. This regulatory framework will also include regulations and provisions on sponsors from outside The UAE to enable them to apply for approval to list their company’s shares in the category of companies established for the purposes of acquisition and merger in the Abu Dhabi Securities Exchange.
He pointed out that the regulations of companies established for the purposes of acquisition and merger in the UAE are characterized by attractive incentives and an innovative share structure that ensures the most smooth and efficient for sponsors in offering private companies for initial public offering.< /p>
Sponsors will have to raise a minimum of 100 million UAE dirhams in the initial public offering, and the units sold will include guarantees giving investors and sponsors the right to convert these units into shares. .
In order to protect investors, companies incorporated for acquisition and merger purposes, upon completion of the IPO, must ensure that 90% of the proceeds are deposited into an interest-free account.
