STOCK ADX NEW   Abu Dhabi Securities Exchange
Another listing is headed ADX's way, this time to its Second Market. The entrant will be MBME Group, the payments firm headquartered in Abu Dhabi. Image Credit: Supplied

Dubai: Amidst all the attention grabbing by UAE’s mega-IPOs, its secondary markets too are getting into the action with the payments company MBME set to list on ADX Second Market on April 17.

The Second Market - or 'Growth Market' after a rebranding - allows privately-owned businesses to connect with investors. Recently, the emergency medical services provider Response Plus Holdings used this route to list. (ADX introduced the second market in 2014, and companies can then go on to have a future IPO as and when they are ready.)

According to the ADX portal, "The Growth Market offers companies access to a wide investor base, support from the ADX on investor engagement and an opportunity to enhance their brand equity."

In Dubai, Nasdaq Dubai offers private businesses similar options when it comes to tapping funding from a wider base.

Read More

MBME's connect with digital payments

MBME offers a host of payment-related services through digital channels, including utility and telecom bills. The move to list on the Second Market also shows UAE tech and digital companies are gradually looking to tapping public investments to fuel their growth narratives.

In the recent past, the Abu Dhabi headquartered G42 had IPOs for two entities, Bayanat Ai and Presight AI. Incidentally, both recorded triple-gain price gains on their first days as listed entities on ADX. There is also talk about another AI-focussed entity - from another holding company - also considering a potential listing.

According to a Dubai-based fund manager, "The second markets are a real option for UAE tech entities, who have until now only gone after private equity or institutional funding for their growth needs. MBME has the required track record to interest a wider pool of investors - if it manages that, the Growth Market listing would make perfect sense."