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Al Ramz Capital, a subsidiary of Al-Ramz Corporation Investments and Developments PJSC, has been re-appointed as a Liquidity Provider for Union Properties Shares after obtaining the necessary approvals from Dubai Financial Market and signing the agreement.
A Liquidity Provider is appointed by a company with the sole objective of enhancing the liquidity of the underlying shares and increasing the frequency of transactions. The Liquidity Provider is independent of the company and has complete autonomy over trading. The LP will transact within pre-defined parameters that are agreed with the company. Some of the potential benefits to the issuer are an increase in price stability, lower trading costs, a reduction in the bid/ offer spread and the potential to increase the valuation metrics.
"We are very happy to have been reappointed by Union Property as Liquidity Provider. This is the second reappointment after Gulf Navigation and another testimony of the confidence our clients have in the services we provide. Union Properties now ranks in the top 5 companies across the UAE in terms of bid/ask spread, making the stock more attractive to retail and institutional investors in the region. We look forward to continuing the journey together to unlock the remaining illiquidity discount in this Share. Being a premier provider of Liquidity Provision services in the region with active mandates to companies listed on the DFM and the ADX, has definitely brought increased liquidity to these companies and we look forward to sign up more corporates over the coming months." commented Mr. Mohammed Al-Murtada Al Dandashi, Managing Director of Al Ramz Corporation.
