ADX anticipates three new IPOs in 2024: The Abu Dhabi Securities Exchange (ADX) is gearing up for three new IPOs in 2024, following a successful year in which six IPOs made headlines in 2023, with three ranking among the “top 20” globally in terms of value and subscriptions, ADX Group CEO Abdulla AlNuaimi told EnterpriseAM UAE on the sidelines of Portfolio Egypt. One IPO is already underway, with two more expected by year-end, he added. (For a refresher on the ADX’s IPO pipeline, read our IPO Watch, above.)

The ADX is already nearing its target market cap of AED 3 tn, with the market cap currently hovering at AED 2.9 tn, he told us. The ADX had set the AED 3 tn target two years ago, he added.

Local investors have the largest share of trading activity, he said. In daily trading, institutional investors represent 80%, while retail investors account for 20%. Foreign investors are also more active on the exchange as opposed to Arab investors due to the inclusion of ADX stocks on indices like MSCI and FTSE, he said.

A focus on investor relations + roadshows: Ongoing strategies to reel in more investors include launching awareness campaigns and roadshows in locations such as New York and London, alongside improving ADX-listed companies’ visibility. The exchange is also making investor relations a key focus, in a bid to improve companies’ communication with investors and encourage them to communicate directly with their investors.

New index to launch this year? AlNuaimi confirmed plans for a new index launch by late 2024 or early 2025, without disclosing the nature of the index. Currently, 12 indices trade on the ADX, including an ESG index developed in late 2023 through a partnership with FTSE Russell.

REMEMBER- The ADX is currently working on developing an Islamic index, which will include an endowment shares service to donate shares for charitable causes.

Next up: Tokenization. The exchange is now working with HSBC towards launching the first tokenized bonds by year-end, Alnuaimi said.

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