The Abu Dhabi Securities Exchange (ADX) is being kept busy as the petrochemicals joint venture Borouge of Abu Dhabi National Oil Company (ADNOC) sets an offer price of AED2.45 per share for its IPO. This is the UAE’s largest-ever IPO, receiving cornerstone commitments worth $570m from Abu Dhabi companies. The offer price suggests a $20b equity valuation.
Meanwhile, the Bahrain-based investment bank GFH Financial Group will begin trading on the ADX on May 31. This will be the company's fourth cross-listing in the region. Bahrain, Dubai, and Kuwait have all listed the investment bank. The move is intended to boost GFH's stock liquidity and give the company access to a larger pool of retail and institutional investors on the Abu Dhabi stock exchange.
Why it matters
As the UAE's economy rebounds from the coronavirus pandemic, the number of listings on the ADX, the Arab world's second-largest stock exchange, has increased. ADX could add 13 additional listings before the end of the year according to experts.
