Nasdaq Dubai unveils new rules for IPOs
Dubai, January 18, 2011
Exchange operator Nasdaq Dubai on Tuesday unveiled new rules for initial public offerings and reporting requirements for listed firms.
New IPOs will need at least 400 'unique shareholders' or a minimum of 10 percent retail investors participating in the issue, the company said.
In addition, listed companies -- which include one of Dubai's flagship firms, DP World -- will now need to report results on a quarterly basis rather than the current half-year reporting pattern.
Nasdaq Dubai chief executive Jeff Singer told reporters that the proposed rules may be amended after a consultation period with market players but added he expects the new rules to be introduced during the second-quarter.
Nasdaq Dubai, which has struggled with low trading volumes, has less than 20 listed companies.
The exchange is majority owned by Borse Dubai, which also has a controlling stake in larger rival exchange, Dubai Financial Market.
DP World is seeking a dual London listing saying it was disappointed with its valuation in Dubai.
In December, UAE handset retailer Axiom Telecom cancelled its plans to list on Nasdaq Dubai citing market conditions and liquidity concerns. - Reuters