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Wio Bank PJSC, the region’s first platform bank, has signed an agreement with Abu Dhabi Securities Exchange (ADX) to facilitate Initial Public Offering (IPO) subscriptions on ADX. This agreement allows Wio customers to instantly subscribe to UAE IPOs on ADX via Wio Bank’s upcoming personal banking mobile application.
This fully digital service will enable Wio’s customers to instantly and digitally create a National Investor Number (NIN) on ADX and apply for IPO subscriptions on ADX in the UAE from their Wio Bank account.
Additionally, Wio customers can also benefit from the option to apply for leverage at a competitive rate of up to five times the amount invested. This 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 per cent of global IPOs in the first quarter of 2023, a reflection of the growing strength of Abu Dhabi’s capital market. In 2022 the UAE market witnessed an increased flurry of IPO activity, with 11 IPOs raising Dh51.2 billion in total, with a total subscription of Dh1.45 trillion.
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 Dh450 billion in 2022, an increase of almost 21.9 per cent from 2021, driven by increased listings, diversified product offering, and an international investor participation. At the same time, the benchmark FADX 15 Index gained 22.6 per cent per cent in 2022, making it the best performing index in the Arab world.
Jayesh Patel, chief executive officer of Wio Bank, 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, providing our customers with immediate access to substantial investment opportunities through our upcoming personal banking application. 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, said: “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. 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 Bank PJSC was created to reboot banking and catalyse the growth of the UAE’s digital economy. It is built around three main capabilities: digital banking apps, embedded finance, and banking-as-a-service solutions. Wio Business was the first banking application from Wio Bank to support and provide start-ups, freelancers, and SMEs with access to simplified, seamless and full digital banking services seamlessly while giving them the opportunity to scale with innovative beyond-banking services.
Following the success of its Wio Business banking application, which has seen over 20,000 sign ups since its launch in September 2022, Wio Bank will be launching its second banking application, Wio Personal, for everyday banking customers, later this year.
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