Abu Dhabi Securities Exchange is to list Eshraq Properties on Thursday the 15th of September on twenty-five per cent of the value of each share (25 Fils) which was paid upon purchase, where the rest is to be covered over a period of five years, which goes in accordance with UAE Company Law.
Initially, the market price will interact with the paid in capital value, consequently promoting Price Transparency for investors and brokers alike. Company shares will be partially settled as market price per share which provides concord to the shares trading manner as well as its clearing, settlement, and depository operations.
This annuity method is designed to ease the financial burden of Shareholders by not paying the entire par value amount of the shares. The UAE Company Law states that each installment should be equal to at least quarter of the par value amount and paid over a period not to exceed 5 years from the founding date of the company. Generally, this contributes in providing a full financial cover to the IPO without creating any form of shortage in funds collected from IPO’s.
ADX will issue the proper regulatory provisions concerning future installments. ADX Trading Screens, Index, and website will indicate the “paid in capital value” of the shares.
Eshraq Properties will be listed on Abu Dhabi’s ADX General Index.
