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
- 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 &
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.