BHM Capital Gains DFM Approval For New Stock Price Stabilisation Mechanism

BHM Capital has received the green light from the Dubai Financial Market (DFM) to implement a price stabilisation mechanism for stocks newly listed on the market. This development marks a significant milestone, with the Spinneys retail chain poised to be the inaugural beneficiary of this service following its public share offering, which is scheduled between 23rd and 29th April. A total of 25 percent of Spinneys' shares will be available for public subscription during this period.

This approval allows both new and existing companies listed on the DFM to appoint BHM Capital as their price stabiliser manager. This role enables BHM Capital to conduct price stabilisation transactions, thereby aiding in the support of the stock's market price for a designated timeframe. This period commences from the trading date of the shares on the Dubai Financial Market and concludes no later than 30 days from that date, adhering strictly to the market rules and regulations established by the Securities and Commodities Authority in the UAE.

Abdel Hadi Al Sa’di, CEO of BHM Capital, expressed his satisfaction with obtaining regulatory approval for this initiative. He highlighted that this mechanism aligns with international standards and plays a crucial role in enhancing market transparency. By regulating the pricing of new offerings through buying and selling activities, it aims to curb speculation, bolster stock price stability, and invigorate market trading dynamics.

Al Sa’di further acknowledged the support from the Dubai Financial Market's management, emphasizing its significance in fostering BHM Capital's operational system development. He outlined the company's commitment to expanding its service offerings to both institutions and individuals. This approach is guided by a strategic vision that seeks to fulfill investor and listed company aspirations with flexibility and foresight towards future challenges. Al Sa’di reaffirmed BHM Capital's dedication to augmenting financial market efficiency and trading facilitation while maintaining strict adherence to transparency standards and regulatory compliance.

The introduction of this price stabilisation mechanism by BHM Capital represents a proactive step towards stabilising the financial market landscape in Dubai. It underscores a concerted effort to align local market practices with global standards, thereby enhancing investor confidence and contributing to the overall health and dynamism of the UAE's financial markets.

With inputs from WAM