Abu Dhabi Securities Exchange’s market capitalisation hits $545bn

Market capitalisation of Abu Dhabi Securities Exchange (ADX) opened above Dhs2tn ($545bn) on June 6 for the first time in its history. The milestone made the exchange, the second largest in the Middle East in just two decades.

For the first time in ADX history, the market capitalization of ADX-listed companies doubled to reach AED 2 trillion. This milestone has made the benchmark index of the region’s youngest exchange the second-largest in the Middle East. #ADX #ADXOne #InAbuDhabi #InvestInAbuDhabi pic.twitter.com/ORJLBAqGEQ

— سوق أبوظبي للأوراق المالية (@ADX_AE) June 7, 2022

The 25 per cent year-to-date surge in the exchange’s market capitalisation was bolstered by a series of IPOs over the past year, including Abu Dhabi Ports, Fertiglobe, ADNOC Drilling, Alpha Dhabi and Multiply Group.

Read: Multiply Group becomes IHC’s 8th subsidiary to list on ADX

Most recently, petrochemicals company Borouge raised $2bn in a listing, while ADQ and Chimera Capital launched the first ADX-listed Special Purpose Acquisition Company (SPAC).

Read: Borouge’s $2bn Abu Dhabi IPO draws $83bn of orders

Also read: ADQ and Chimera Investments to launch UAE’s first SPAC on ADX

The milestone has also been supported by ‘ADX One,’ the exchange’s strategy to enhance liquidity through listing incentives, trading fees reductions and innovative products and services, Abu Dhabi Government Media Office reported. Since the launch of the strategy in 2021, the exchange has developed several initiatives to boost market liquidity, including the introduction of a derivatives market in the fourth quarter of 2021.

Read: Abu Dhabi Securities Exchange launches derivatives market

Meanwhile, the exchange’s benchmark index, the FTSE ADX General Index, has gained 16 per cent in 2022. The exchange also established a framework for listing SPACs, approved by the Securities and Commodities Authority in January.

Read: UAE’s Securities and Commodities Authority approves GCC’s first SPAC regulatory framework

In 2021, the exchange’s market capitalisation more than doubled to Dhs1.6tn from Dhs750bn. That followed several new listings on the growth market, including Palm Sports, Zee Stores and Easy Lease, three subsidiaries of IHC, and an exchange-traded fund. Previously known as the second market, the growth market was rebranded in April to accelerate Abu Dhabi’s ecosystem for emerging companies.

Read: UAE’s ADX rebrands ‘growth market’ to boost private sector listings

During the first quarter of 2022, the exchange recorded an 87 per cent year-on-year increase in the value of total trades made.

Traded values (buy + sell) on the exchange rose to Dhs202bn in Q1 2022 from Dhs108bn in Q1 2022. Meanwhile, the market value of shares owned by foreign investors in Q1 2022 jumped 163 per cent to Dhs131bn from Dhs50bn in Q1 2021.