RIYADH: Abu Dhabi IPO Fund confirmed that it is developing three initial public offerings by the end of 2024, with one in the financial sector.
The advisory head of ADIPOF, Bassel Al-Khawaja, revealed the organization is also involved in prospective listings with companies in the technology,and hospitality realms.
Speaking to the Emirates News Agency, also known as WAM, during the second day of the Abu Dhabi Finance Week, Al-Khawaja outlined that these offerings are anticipated to be “coming to the markets by the end of 2024.”
He disclosed that one of the IPOs will be dedicated to a family business operating within the financial sector, specifically in foreign exchange and remittances. This initiative aligns with the fund’s strategy to attract and support family businesses.
Emphasizing the significance of family businesses in Abu Dhabi’s economic landscape, Al-Khawaja emphasized that family businesses are a key focus for ADIPOF, playing a pivotal role in advancing economic development in the emirate.
He added: “The fund is looking forward to launching more initial public offerings for family businesses and private companies.”
Al-Khawaja clarified that ADIPOF, with a capital of 5 billion dirhams ($1.35 billion), is designed to facilitate the transition of companies from private ownership to being publicly listed on the Abu Dhabi Securities Exchange.
ADIPOF aims to invest in five to 10 private sector companies annually, with a particular emphasis on small and medium-sized enterprises.
The fund targets acquiring between 10 and 40 percent of the total available shares for subscription. Additionally, it collaborates closely with local banks, leveraging their expertise in the company listing process.
ADIPOF is a government led initiative that enables private enterprises to accelerate growth by facilitating initial public offerings on ADX.
ADIPOF supports businesses, through all three stages, by providing education, guidance and potential financial support that enable cost-efficient and streamlined processes that will reinforce ADX’s status as a leading stock exchange in the region.
It contributes to a diversified investment landscape and potentially provides companies with access to growth capital, thereby creating liquidity for founders and sponsors.