Sunday 18, June 2017 by Georgina Enzer

Al Ramz Capital is a liquidity provider for Union Properties

Al Ramz Capital, a subsidiary of Al-Ramz Corporation Investments and Developments PJSC, has been appointed as a Liquidity Provider for Union Properties’ shares after obtaining the necessary approvals from Dubai Financial Market and signing the agreement in June, 2017.

“We are pleased to collaborate with Al Ramz Capital as a liquidity provider to the company’s stock and we are very confident that this cooperation will help to enhance the optimal liquidity level of the company's shares and increasing the frequency of transactions,” Ahmad Al Marri, General Manager of Union Properties said.

A liquidity provider is appointed by a company with the sole objective of enhancing the liquidity of the underlying shares and increasing the frequency of transactions. The Liquidity Provider is independent of the company and has complete autonomy over trading. The LP will transact within pre-defined parameters that are agreed with the company. Some of the potential benefits to the issuer are an increase in price stability, lower trading costs, a reduction in the bid/ offer spread and the potential to increase the valuation metrics.

“We are delighted to see a continuous growing demand on Al Ramz Capital services, in addition to the realisation of listed companies of the importance of the liquidity provider's role in enhancing the efficiency and institutional presence in the capital markets and attracting financial investments which will support the market depth. We will always strive to maintain the company’s role as a pioneer in providing innovative investment products that contribute to the development of the investment environment and provide better financial services to companies and the investment community. We are proud to cooperate with Union Properties in this regards, which further confirms the confidence of investors and listed companies in Al Ramz,” said Mohammed Al-Murtada Al Dandashi, Managing Director of Al Ramz Corporation.  

Al Ramz Capital will perform its duties as a liquidity provider through a specialised department, which is made up of equity professionals with over 30 years equity market experience between them. This department will determine the optimal liquidity level of the company's shares, given the market price and underlying supply and demand observed. The Liquidity Provider will also be responsible for maintaining a tight spread between bids and offers, which will in turn provide investors with optimal entry and exit price levels in order to better manage their portfolios.

“By appointing Al Ramz as a Liquidity Provider Union Properties is demonstrating commitment to its investors to ensure consistent and transparent pricing at all times. We are very pleased to announce the appointment of a further client to our portfolio and expect to be announcing more in the coming weeks. This service allows companies to increase the underlying liquidity of the shares the benefits of which include an increase in price stability, lower trading costs, a reduction in the bid/ offer spread and the potential to increase the valuation metrics,” Galen Moore, Head of Market Making and Liquidity Provision said.

 

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