Arkan Building Materials Company P.J.S.C (Arkan), an Abu Dhabi based company, has today listed it’s stock of AED 1.75 billion (US$475.5 million) on Abu Dhabi Securities Market (ADSM). Arkan is the 61st company to be listed in Abu Dhabi and the ninth company in the construction sector.
Arkan’s share capital is 1,750,000,000, issued at a nominal value of AED 1. The IPO was fully subscribed and the shares can be traded by UAE nationals only. The capital raised will be used by the company to finance future expansion of its portfolio businesses – the Emirates Cement Factory in Al Ain and the Emirates Concrete Block Factories in Al Ain and Mafraq, and their investment projects related to its core business.
Arkan was incorporated on 15 January 2006 and is 51 percent owned by the General Holding Corporation (GHC), a corporation wholly-owned by the Government of Abu Dhabi.
H.E Salem Bin Mohammed Al Dhaheri, Chairman of Arkan, said that all administrative and legal requirements had been finalised for the company’s stock to be traded on a daily basis, according to ADSM’s rules.
Speaking on the first day of trading, he said: “Today’s listing is a landmark moment for Arkan. It will enhance our market position both locally and regionally and will secure our future growth. It will also open the door for UAE investors looking to diversify their portfolios.”
Rashed Al Baloushi, Acting Director General of ADSM, welcomed Arkan to the market and highlighted the importance of IPOs to the long-term stability of the market: “We congratulate Arkan on their successful listing on our market today and look forward to working with them as they develop and grow.
“As part of our best practices programme, we are encouraging more companies to list on our market. More IPOs will give investors further opportunities to diversify and therefore spread their risk. This will help to enhance market stability, which will attract institutional investors to Abu Dhabi,” he added.
H.E Mr Al Dhaheri concluded by saying: “Arkan is already demonstrating its effectiveness by meeting new targets in the rapidly expanding UAE construction market. Having an established and secure base has made all the difference to our own rapid and efficient expansion.”
H.E Mr Al Dhaheri thanked ADSM’s executives for finalising the necessary steps to trade Arkan’s stocks and said that he was looking forward to working with them in the future.
About ADSM
Since the end of 2001 the number of listed companies traded on ADSM has grown fourfold; there are now nearly six times as many brokerage firms; the aggregate market capitalisation of companies traded on the exchange is 20 times higher; there are 50 times as many shareholders registered and ADSM is a model emiratisation employer with UAE nationals making up about 74% of staff.
About Arkan
Arkan Building Materials Company P.J.S.C. (Arkan) was established on January 15 2006 for the purpose of owning and developing companies and businesses involved in the construction-related sector in the UAE. Its strategic objectives are to make further investments in these businesses and companies and in related businesses, and generally to trade, deal or engage in commercial activities that are core to the operations of the Portfolio Businesses and other subsidiaries.
