UAE-based digital bank Wio has signed an agreement with Abu Dhabi Securities Exchange (ADX) to facilitate Initial Public Offering (IPO) subscriptions on ADX
This means Wio customers can instantly subscribe to UAE IPOs on ADX via the bank’s upcoming personal banking mobile application. The bank says that the new service is part of its commitment to deliver fast and seamless banking experiences. Customers will be able to instantly and digitally create a National Investor Number (NIN) on ADX. They can then apply for IPO subscriptions on ADX in the UAE from their bank account with no further paperwork.
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Additionally, Wio customers also benefit from the option to apply for leverage at a competitive rate of up to five times the amount invested. This added leverage, says Wio, empowers customers to increase their allocation of shares in an IPO. Furthermore, Wio can instantly approve the leverage application, using its innovative digital platform and deep customer insights.
The ADX accounted for 14% of global IPOs in the first quarter of 2023. This reflects the growing strength of Abu Dhabi’s capital market. In 2022 the UAE market witnessed an increased flurry of IPO activity. Specifically, some 11 IPOs raised AE51.2bn in total, with a total subscription of AED1.45trn.
ADX: widening its investor base, enhancing market liquidity
This agreement further supports ADX’s strategy of continuing to leverage digital solutions to widen its investor base and enhance market liquidity. Trading value on the ADX reached AED450bn in 2022. This increase of almost 21.9% from 2021 is driven by increased listings, diversified product offering, and an international investor participation. At the same time, the benchmark FADX 15 Index gained 22.6%% in 2022, making it the best performing index in the Arab world.
Jayesh Patel, Chief Executive Officer of Wio Bank PJSC, said: “We are pleased to have strengthened our cooperation with ADX to further enhance our digital offerings to our customers. The partnership has enabled us to streamline the process by removing the hassle of paperwork submission. This provides our customers with immediate access to substantial investment opportunities through our upcoming personal banking application.
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By GlobalData“This collaboration is a great example of how we are leveraging Wio’s advanced technology and efficient financial management solutions to support our customers financial ambition and be part of their growth journey through innovative solutions.”
Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, added: “The agreement with Wio Bank enables us to further enhance our digital offering by providing investors a fast and efficient access to IPO investment opportunities on ADX through Wio Bank’s digital banking application.
Wio Business: over 20,000 sign-ups since September 2022 launch
“The collaboration is a great example of our strategy to work with dynamic and innovative partners to support the financial ambitions of investors in their financial growth journey. We will continue to actively support the listings’ pipeline and introduce a wider range of products and services that meet the rapidly evolving needs of our issuers and investors alike.”
Wio launched initially with its Wio Business banking application. It reports over 20,000 sign ups since its launch in September 2022. Wio will be launching its second banking application, Wio Personal, for everyday banking customers, later this year.
Wio Bank is jointly owned by Abu Dhabi Development Holding Company (ADQ), Alpha Dhabi Holding, Etisalat, and First Abu Dhabi Bank.
