Dubai Financial Market (DFM) today announced that Marka, (Public Joint Stock Company under formation) will become the first issuer to utilize the DFM “eIPO” platform, a sophisticated and efficient solution for IPO subscription directly linked with the receiving banks. The solution was launched by DFM during its participation in GITEX 2013.
Announced at the Annual Investment Forum (AIM) that opened today in Dubai, this subscription structure has been achieved with the support of CAPM Investment a subsidiary of Finance House, the financial advisor and lead manager of Marka’s initial public offering, and National Bank of Abu Dhabi (NBAD), the lead receiving bank. The announcement came in the presence of Hassan Abdulrahman Al Serkal, Executive Vice President, Chief Operations Officer, Head of Operations Division, DFM, Mahdi Mattar, Chief Executive Officer of CAPM Investment, a subsidiary of Finance House, and Majd Maaitah, Managing Director, Securities and Funds Administration Services, NBAD.
Through the “eIPO” platform, investors can easily subscribe to IPOs by completing the online application as well as paying the subscription amount and receiving excess funds instantly on their iVESTOR Card, the innovative payment solution developed by DFM, which will save time and effort, decrease any risk of mistakes and ensure information accuracy, as well as offer potential investors the opportunity to view the IPO prospectus and summary in addition to the articles of association of the offering company.
Commenting on this development, Hassan Abdulrahman Al Serkal, Executive Vice President, Chief Operations Officer, Head of Operations Division, DFM, said: “Since its inception in 2000, DFM has been firmly committed to innovation and development as well as to enhance services provided to market participants in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. As a result, DFM has developed this efficient solution which represents a milestone in the way IPOs will be implemented during the various stages of the IPO process. This platform enables linking the receiving banks of the IPO or rights issue to the clearing system of DFM in order to swiftly conclude allotment and excess fund reimbursement and ultimately enhance the processes that enable listing and trading to take place immediately after the IPO conclusion.
Ali Al Hashimi, Executive Vice President, Head of Financial Services Division, DFM, said: “This electronic and smart platform enables receiving banks to effectively process the IPOs without the need to involve big number of employees in comparison to the past as well as it accelerates the allotment and reimbursement of excess funds. Through connecting with the platform, clients of receiving banks can easily subscribe and pay the amounts due via a variety of channels including; online, ATMs and smart phone applications.”
Mahdi Mattar, Chief Executive Officer of CAPM Investment, a subsidiary of Finance House, said: “We are very pleased with such innovations that make the subscription as well as the listing process more efficient. In addition to the eIPO and the electronic subscription window, both SCA and the DFM have streamlined the application, subscription and listing processes, a step that is highly welcomed by both the investment banking community as well as companies aspiring to go public.”
Majd Maaitah, Managing Director, Securities and Funds Administration Services, NBAD, said: “This electronic subscription window is a creative initiative that eases subscription for investors and the allocation and creating of the company’s share book after the IPOs close.”