Dubai: Abu Dhabi’s ‘Second Market’ – the platform that connects investors with private-ly owned businesses – will now be known as the ‘Growth Market’.
The rebranding will thus offer a ‘better representation’ of the type of companies either already listed in the platform or planning to do so, said ADX in a statement. The Growth Market will continue to target startups, family-owned businesses and early-stage growth companies make their transition into listed entities.
The Growth Market, with a market cap of Dh62 billion, returned a ‘robust performance’ last year. The value of shares traded exceeded Dh16 billion, while the total number of companies listed on the market increased to 13.
“The Growth Market encapsulates our continued ability to meet both issuer and investor needs while also adding scale to our offering and growing exchange,” said Saeed Hamad Al Dhaheri, Managing Director and CEO of Abu Dhabi Securities Exchange. “By paving the way for companies to begin their capital markets journey, in a streamlined and less onerous manner, we open up numerous growth avenues for them to explore including facilitating a potential IPO on the Main Market in the future.”
“The Growth Market is an integral part of the ecosystem that Abu Dhabi is building to nurture business, from start-ups through to maturity,” said Hisham Khalid Malak, Chairman of the Abu Dhabi Securities Exchange.
The name change follows the unveiling of a new brand and logo for the exchange last year. The exchange marked the launch of the Growth Market with a bell ringing ceremony held at its headquarters.
The Growth Market will provide confidence to owners of companies and investors that there is a clear and straightforward pathway for companies to begin their capital markets journey in Abu Dhabi
Launched last year, the ADX One strategy features 22 ‘strategic projects’ to encourage the listings pipeline, and introduce new products and services that meet the requirements of issuers and global investors.
The exchange also offers companies post-listing assistance, including access to AGM management, dividend distribution, and corporate communication support.
To be eligible for inclusion in the Growth Market, companies must convert to a private joint company, have at least two years of incorporation, and records of audited financial statements, and list at least 5 per cent of their share capital.
The market cap of the Abu Dhabi Securities Market General Index has more than doubled since 2021 to over Dh1.8 trillion.