NEXT IPO CYCLE EXPECTED TO BRING ‘BIG OPPORTUNITIES’, ABU DHABI SECURITIES EXCHANGE’S CEO TELLS GLOBAL PLATFORM

A stronger trading platform and new regulations are supporting a development drive under way at the Abu Dhabi Securities Exchange (ADX) in preparation for an expected turnaround in the global financial market, its CEO, Rashed Al Blooshi, told Global Platform.

Speaking in a wide-ranging interview broadcast on Oxford Business Group’s online news platform, Al Blooshi voiced his confidence that the challenges weighing on the world’s markets would be “overcome very soon”.

He was equally optimistic that the Initial Public Offering (IPO) pipeline would regain momentum, once confidence returns to the market. “Companies are hesitant about going public right now,” he told viewers, “but once the right time comes,  there will be a big opportunity for investors to invest in this IPO cycle.”

In his interview, Al Blooshi highlighted the ADX’s efforts to make the IPO process quicker and more efficient through streamlining and technical improvements, by means of the ADX-eKtetab, the electronic IPO platform provided by the ADX. ADX-eKtetab has been especially designed to provide active support for electronic services of the capital markets in regards with completion of the subscription and listing process in conformity with the latest systems adopted by the world stock markets.

ADX-eKtetab would enable investors to fill electronic IPO applications available at the subscription website to save time and efforts, lower errors and ensure accuracy of information. Further, subscription necessary information, for example the Prospectus, issue summary, memorandum and Articles of Association of the company offering its shares in the public offering may be accessed. Through the platform, subscribing banks may be linked with the system of setting off and ADX deposit to complete allocation process, recover subscription refund, complete listing and trading in record time.

He also noted the positive impact of upgrading ADX to the Emerging Markets status by both the MSCI index (Morgan Stanley Capital International) and the S&P Dow Jones in 2014. Al Blooshi also observed that the ADX was classified as an "Emerging Market" by Ftse index in 2009, and in 2011 by S&P and Russell Investments indexes.

The upgrade is instrumental in supporting the ADX’s bid to become the preferred choice for capital markets in the region. “Being part of the emerging markets requires us to fulfil key criteria, which we want to do, so, by default, we will develop the infrastructure of the market, together with procedures and rules,” he told Global Platform.

Further benefits, Al Blooshi added, included greater exposure for the ADX on the international stage and a major investment boost, which was sufficient to “stabilise the stock market and increase liquidity”. “About 1000 new institutional investors came to the ADX right after the MSCI’s announcement and, today, we are hence talking about 5000 foreign institutional investors at the exchange,” he noted.

It is worth noting that ADX won the Most Innovative Exchange GCC 2015 Award.  The award, given by Capital Finance International, celebrates achievement, innovation from an international perspective, recognizing organizations with innovative technology products backed by strong management, excellent service standards and sound business models.

Other topics explored in the interview include the ADX’s decision to invest in the trading system as a means of strengthening the equity market and its plans for introducing new financial instruments.

Neslihan Aydagul, Managing Director of Global Platform, said the interview with Al Blooshi provided viewers with a fascinating insight into the significant developments under way at the ADX and Abu Dhabi’s vision for the exchange’s expansion. She added that it also highlighted the key role that OBG’s digital broadcasting service was assuming as an essential provider of on-demand business intelligence.

“One of our main aims when launching Global Platform was to create a powerful and direct communication channel through which high-profile players from the public and private sectors could keep investors around the world updated on headline issues in fast-moving, often challenging economic times,” she said. “With studies indicating that video will account for around 80% of the world’s mobile data traffic by 2020, we are confident that business leaders will welcome this highly relevant and valuable addition to Oxford Business Group’s portfolio of research tools and the informed messages that our interviewees are relaying.”