Merger of DFM and ADX to result in the listing of 36 Islamic entities on a single bourse - IFN

Merger of DFM and ADX to result in the listing of 36 Islamic entities on a single bourse

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UAE: After a hiatus of almost three years, it has been reported that the merger between Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) is finally on its way. It is said that both parties have appointed advisors for the tie-up and is currently undergoing a valuation exercise. At present, ADX has 67 companies listed on the exchange whilst DFM has a register of 64 listed companies. The union of both bourses will result in a total of 36 listed Islamic entities out of a total of 131 companies. Earlier this year, it is said that the merger will see the governments of Abu Dhabi and Dubai owning 45% apiece of the merged entity, while the remaining 10% is to be held by minority shareholders. Abu Dhabi has elected First Gulf Bank and JPMorgan Chase to advice on the deal while Citigroup has been chosen to assist DFM in the merger process. Expected to be resolved by the end of the year, the move could stimulate a deepening of the equity market in the UAE, which is touted to be the Middle East’s second-largest economy.