The Direct Deals will be implemented through the trading engine yet during a special session between 8:00 and 8:30 am. Number of shares has to be 3% and above of the capital or with a value of AED 200 million at least.
This new arrangement further streamlines large quantity deals enabling investors to directly sell their shares through mandating brokerage firms and investment banks to arrange for the deal with potential buyers. Disclosure and transparency rules in effect must be observed when conducting such deals.
His Excellency Essa Kazim, Chairman of DFM said: “As part of DFM‘s commitment to further enhance its momentous record in terms of adopting best practices and providing investors with a fair and transparent trading environment, we have prepared to launch this new mechanism in coordination with the market participants. This new service streamlines large quantity deals as offering them through the regular trading session may affect the share price. Sometimes, institutions and high net worth individuals require conducting such deals. In order to facilitate the implementation of large deals and based on our thorough deliberations, we make this service at investors’ disposal so that they offer the quantity to potential buyers and conclude the deal during a special session within broader fluctuation band. To maintain transparency and justice amongst investors, Direct Deals will be subject to the disclosure requirements of the Securities and Commodities Authority (SCA) and DFM in general and the rules relating to transactions that lifts ownership to 30% or more in particular.”
The details of implemented Direct Deals will be announced through DFM website and a new tap on the Market Watch page will be introduced to display the details of such deals. Additionally, the exchange will notify the SCA of the details of Direct Deals once implemented and update percentages of major shareholders’ ownership according to the settlement date.