BHM Capital Introduces Price Stabilisation Mechanism for Newly Listed Stocks on DFM

BHM Capital has announced its approval by the Dubai Financial Market (DFM) to introduce and practice the price stabilisation mechanism for newly listed stocks in the market.

Spinneys retail chain will be the first company to benefit from this service upon listing in the market, following the offering of 25 percent of its shares for public subscription between 23rd and 29th April.

With this approval, companies that are newly or already listed on the market can appoint BHM Capital as their price stabiliser manager, which enables them to engage in price stabilisation transactions, supporting the stock price in the market for a specified period starting from the date of trading it’s shares in the Dubai Financial Market and ending no later than 30 days from that date; in accordance with market rules and regulations set by the Securities and Commodities Authority in the UAE.

Abdel Hadi Al Sa’di, CEO of BHM Capital, stated,

"We are pleased to have been granted regulatory approval to introduce and implement the price stabilisation mechanism for newly listed company stocks in the Dubai Financial Market, following the initial offering. This mechanism, which aligns with international standards, contributes to enhancing transparency by regulating the pricing of new offerings in terms of buying and selling, thereby reducing speculation, supporting the stability of these stock prices, and increasing market trading activity.”

He added,

"We extend our gratitude to the management of the Dubai Financial Market for their contribution, that supports our ongoing development of our operational system, expanding the scope and level of services provided to institutions and individuals, in accordance with a strategic approach that meets the aspirations of investors and listed companies, with a clear and flexible vision that anticipates the future. We will continue our efforts to increase the efficiency and activity of financial markets and facilitate trading operations, while adhering to the highest standards of transparency and compliance with applicable laws and regulations."

News Source: Emirates News Agency