Abu Dhabi:The Abu Dhabi Securities Exchange (ADX) has introduced an updated and expanded 'Investor Relations Guide' aimed at fostering stronger connections between issuers and investors. This comprehensive manual is designed for management teams and boards to enhance long-term value and investor trust.
According to Emirates News Agency, the updated guide serves as a roadmap to meet evolving global market expectations, transitioning from basic compliance to strategic engagement. It offers practical frameworks, actionable checklists, and templates tailored for issuers, contributing to the strength of Abu Dhabi's capital markets.
The guide emphasizes the importance of clear and consistent issuer communications, which are pivotal in improving market liquidity, fair share price valuations, and attracting institutional capital. By building on guidance from 2022, the ADX aims to enhance investor understanding and information quality within the exchange.
To promote the adoption of these practices, the ADX plans to recognize top-performing issuers annually for adhering to mandatory standards and best practices. Companies failing to comply with baseline rules could face warnings or fines, determined by exchange management.
Abdulla Salem Al Nuaimi, Group Chief Executive Officer of ADX, highlighted that the guide provides issuers with a practical tool to advance from compliance to strategic investor relations, supporting Abu Dhabi's Economic Vision 2030 by attracting international capital and fostering market engagement.
Furthermore, ADX is collaborating with partners to introduce a UAE National Investor Relations Program, aiming to develop Emirati IR professionals equipped with the skills and best practices for effective investor engagement.
The guide, applicable to all companies listed on the Market and Growth Market, outlines six baseline operational requirements, including appointing a dedicated investor relations officer and maintaining an investor relations webpage. It also covers 12 practical areas of investor relations, such as managing earnings calls and handling crises, to build confidence and interest in company shares.