Rights Issues Achieve Momentous Success on Dubai Financial Market with AED 527 Million of Trading

Rights Issues Achieve Momentous Success on Dubai Financial Market with AED 527 Million of Trading

Dubai Financial Market (DFM) has recorded AED 527 million of trading in Rights Issues of three listed companies since the beginning of 2016. The Rights Issues are for Ajman Bank, Dubai Parks & Resorts and Dubai Islamic Bank. The robust activity clearly indicates the significance of this new instrument that has enabled shareholders who do not wish to subscribe to the new shares to sell all or part of their Rights to other investors who do wish to subscribe.
A Rights Issue is a financial instrument representing rights that are legally granted to the company's shareholders to have priority in subscribing for capital increase shares.
His Excellency Essa Kazim, Chairman of DFM said, “The DFM is constantly exploring development and introduction of new services in line with the expectations of various market participants. The Exchange has initiated a Rights Issues’ trading service, which has provided investors with new and flexible financial instruments to benefit from capital increases of listed companies. This service has enabled investors to sell their rights and gain additional liquidity while deciding not to subscribe to the new shares. The implementation of thousands of trades with a total value exceeding AED 500 million undoubtedly indicates investors’ strong appetite for this new tool. DFM has implemented an extensive awareness campaign through numerous channels including; the DFM website and media as well as SMS to update investors on various details of the Rights Issues’ trading.”
It is noteworthy that DFM has launched this service in 2015 with the trading of Takaful Emarat Rights Issue, compared to three companies to date in 2016 with 12,813 trades on 747,653,904 rights issues.
Table summarizes Rights Issues’ trading on DFM since the beginning of 2016:
  Volume Value (AED) Trades
AJMAN BANK-RI 168,619,803 48,234,556 2,265
DUBAI PARKS-RI 369,702,530 107,605,726 3,821
DIB-RI 209,331,571 371,074,706 6,727
Total 747,653,904 526,914,987 12,813



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