UAE developer FAM Holding plans to list on Abu Dhabi exchange's second market

Company will use the proceeds to expand in the Mena region and Europe

FAM Holding joins a growing number of family-owned businesses listing on the Abu Dhabi Securities Exchange. Photo: ADX

UAE developer FAM Holding plans to list its shares on the Abu Dhabi Securities Exchange (ADX) Second Market, joining a growing list of family-owned companies looking to tap into the listings boom in the Arab world’s second-largest stock market.

FAM Holding will use the listing proceeds for expansion, particularly amid increasing demand from real estate investors to capitalise on high rental returns, the company said on Sunday.

“The company has been converted into a private joint-stock company with a capital of Dh50 million [$13.6m] after previously receiving approval from the ADX, and we hope to receive the final approval shortly,” said Faisal Ali Mousa, chairman of FAM Holding.

“Since its establishment in 2009, FAM Holding has expanded rapidly. In recent years, it has further expanded operations in northern Emirates covering Ajman and Ras Al Khaimah.”

The UAE’s property market has recovered strongly from the coronavirus-induced slowdown on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme.

FAM Holding focuses on developing properties at affordable prices for middle-income families, with payment terms ranging from six to 10 years.

It has an investment portfolio worth Dh2bn and 5,750 residential apartments in the UAE.

The company, which primarily operates in the Northern Emirates, plans to expand into other markets in the Middle East and North Africa region and Europe as part of its long-term strategy.

Meanwhile, the ADX, which is owned by state holding company ADQ, more than doubled its market capitalisation last year to a record Dh1.6 trillion — making it one of the best performing exchanges globally in 2021.

It is pressing ahead with its ADX One strategy, which was launched in 2021 to “significantly" increase market capitalisation, strengthen corporate governance and "meet the evolving needs of global issuers and investors". The Abu Dhabi bourse aims to reach a market value of $816.7 billion in the next few years.

Nine companies listed on the ADX last year. They include Adnoc Drilling, which raised $1.1bn in October, and Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, which reaped about $795m.

The exchange has continued with listings this year, too. Abu Dhabi Ports Group raised $1.1bn from its share sale in February to expand operations globally and boost growth.

The ADX could host 13 more listings before the end of this year, Mohammed Al Shorafa, chairman of ADX, told Sky News Arabia last month.

Abu Dhabi also unveiled a Dh5bn IPO fund last year to help encourage and support private companies to list on the local stock market.

“Listing in the ADX Second Market is the beginning of a new period of growth and development for FAM Holding,” Mr Ali Mousa said.

“FAM Holding’s primary goal is to maximise income and sales and its plan to list shares will create long-term value for shareholders.”