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Bahrain’s GFH to cross-list shares on Abu Dhabi Securities Exchange in May

This will be the group’s fourth regional listing after Bahrain Bourse, Dubai Financial Market and Boursa Kuwait

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Bahrain’s GFH Financial Group on Sunday plans to cross-list its shares on the Abu Dhabi Securities Exchange (ADX) in May 2022, making it the group’s fourth regional listing.

The financial group’s shares already trade on the Bahrain Bourse (BHB), Dubai Financial Market (DFM) and Boursa Kuwait (BK). Current shareholders of the Group will be able to transfer shares from existing markets where they hold shares to ADX. Its shares closed at Dh1.17 per share on Friday, down 0.84 per cent, on the Dubai bourse.

The cross-listing will further enhance liquidity in GFH’s shares, benefiting shareholders, and enabling the group to gain access to a broader base of retail and institutional investors that trade on the exchange.

Second company in April

GFH became the second company to announce a listing on ADX this month. On April 3, property developer Fam Holding announced its intention to list its shares on the ADX Second Market. Fam Holding has an investment portfolio worth Dh2 billion and 5,750 residential apartments in the UAE.

ADX is one of the most attractive and largest GCC exchanges in terms of liquidity, trading volumes and shareholder return. It also ranked first among GCC exchanges in 2021 for the highest year-on-year increase in trading volumetrics.

Liquidity jumped five-fold

ADX’s market liquidity jumped five-fold in 2021 amid the IPO boom. Traded values on the exchange increased 407 per cent from Dh145 billion in 2020 to Dh739 billion in 2021, driven by higher levels of domestic and international investment. Local investors accounted for 70 per cent of the exchange’s traded value, while foreign institutional investors accounted for 30 per cent.

Mohammed Al Shorafa, chairman of the Abu Dhabi Securities Exchange, said during the World Government Summit last month that the Abu Dhabi bourse – which has a market cap of Dh1.6 trillion – has another 15 companies in the pipeline for the IPO. It also created a new IPO fund to assist family companies to go public.

ADX a vibrant market

Hisham Alrayes, CEO of GFH, said ADX is considered one of the most vibrant and fast-growing markets in the GCC.

“In line with our strategy, we also look forward to achieving a more entrenched presence in Abu Dhabi, tapping into growth both on ADX and in the local economy. With this listing, we will be better positioned to serve our existing shareholders in UAE and Abu Dhabi and to attract new ones from among ADX’s sizable retail and institutional investor base,” he said.

— waheedabbas@khaleejtimes.com