Foreign investors to facilitate IPOs of Kazakh companies through Tabadul Hub
The Kazakhstan Stock Exchange (KASE) has officially begun trading via the Tabadul Digital Exchange Hub in the United Arab Emirates (UAE). This occurred six months after the signing of a corresponding agreement with the Abu Dhabi Securities Exchange (ADX), the developer of the digital platform. As a result of the agreement, investors from Kazakhstan can invest in securities issued by companies based in the UAE and other Gulf countries, and vice versa. Additionally, the experience of foreign investors is expected to improve the process of initial public offerings (IPOs) for local enterprises, according to representatives of the exchanges, who attended the KASE: Joining Tabadul Digital Hub international conference.
As KASE CEO Alina Aldambergen noted, although the agreement was signed in August, its implementation took time as the two sides had to complete joining procedures, get infrastructure up and running and perform some calculations. Aldambergen also highlighted that all commission fees within the Tabadul trading will be set at the lowest possible level, aiming to facilitate and accelerate the entire process.
There are several members of Tabadul, including Abu Dhabi Securities Exchange (ADX), Muscat Stock Exchange (MSX), the Bahrain Bourse (BHB) and the Astana International Exchange (AIX). The trading process is designed to operate on the principle of bilateral cooperation. For instance, Kazakhstani broker SQIF Capital has already become a member of ADX. Three more brokers are on their way to obtaining ADX membership: Freedom Finance, Halyk Finance and BCC Invest. On the other hand, All Ranks, International Securities and BHM Capital are set to become members of KASE. She added that several other stock exchanges from Central Asia may join Tabadul in the near future.
«The participation of brokers from the Gulf region in our trade is very important to us. We organize a lot of events focused on boosting liquidity in the stock market so that Kazakhstani companies can go public and successfully place their shares. We are going to discuss all the processes with experienced international brokers who possess new technologies. We are interested in this cooperation, as it will allow us to create capital flows between the Middle East and Eurasian states going through our region,» Aldambergen said.
Saker Asllan, chief exchange operations officer at ADX, also views access to international investors powered by Tabadul as a source of vast opportunities for Kazakhstani companies going public. He noted that the digital platform significantly simplifies IPO procedures, while also ensuring compliance with all local legal requirements. The hub is available for investors registered with local brokers, provided that they meet all the requirements set by international stock exchanges.
Tabadul Digital Exchange Hub was launched in July 2022. The hub provides a digital connection between trading platforms and grants brokers remote access to them. As a result, local investors can enter international stock markets. Currently, there are more than one million users registered in the system with access to securities from various sectors. The Astana International Exchange joined Tabadul in April 2024.
