Listing Benefits & Advantages

Listing provides public shareholding companies with many benefits and advantages which are inaccessible outside the market. These include recognition and follow-up by the public of its productive and commercial activities, and fair valuation of its stock, which would in turn enable those companies to make appropriate decisions to raise their respective capital. Such advantages may only be realized within a regulated market, backed by appropriate legislations and supervisory systems.

The most important advantages of listing at Abu Dhabi Securities Exchange may be summarized as follows:

• Promotion & Publicity :-
  Listing provides companies with promotion and publicity opportunity. The regular appearance of listed companies in daily trading bulletins and various publications issued by the Market would enhance recognition by the public and ensure close follow-up of their activities and products by the investing public.
• Fair Valuation:-
  The Market mechanisms ensure adequate interaction of supply and demand for fixing prices, hence reflect the real market value of listed stocks. Furthermore, the legal and technical controls which govern trading, including upper and lower ceilings for daily prices, tend to restrict speculations which may compromise the interests of listed companies.
• Efficient Electronic Trading, Clearing & Settlement System:-
  Utilizing a state of the art system of electronic trading, clearing & settlement, Abu Dhabi Securities Exchange provides highly efficient services in this domain. Investors may easily liquidate their stocks through electronic compilation, interaction and execution of selling and purchasing orders, followed by transfers of ownership from sellers accounts to buyers accounts in a record time of (T+0), while settlements are completed the following day (T+1). This technique substitutes the traditional method whereby orders were compiled through brokers in a manner that require prolonged trading, settlement and clearing time.
• Access to Additional Financing:-
  Having become known to the public, and with their stocks fairly determined by the market, listed companies may easily obtain the capital increases they need to finance their productive activities and expansions, and at far less cost compared to borrowings from financing agencies.
• Facilities For Take-Over & Merger Operations:-
  Listed companies may avail from the regulatory and technical procedures which govern trading, clearing settlement and transfer of ownership, in facilitating take-over and merger operations. Such operations are conducted through modern electronic systems, in accordance with fair legislations aimed at protecting the interests of all related parties.