Tabreed Partners with xCube to Boost Share Liquidity
Tabreed has announced a strategic partnership with xCube to enhance trading liquidity of its shares on the Dubai Financial Market.
Summary
Tabreed has partnered with xCube to improve trading liquidity, boost investor confidence, and benefit shareholders. This move aligns with Tabreed's growth strategy and commitment to shareholder value.
In a significant move to enhance its market presence and shareholder value, National Central Cooling Company PJSC, better known as Tabreed, has announced a strategic partnership with xCube, the leading market maker and liquidity provider on the Dubai Financial Market (DFM). This partnership appoints xCube as the official Liquidity Provider for Tabreed's shares traded on the DFM, a decision that is poised to improve trading liquidity and boost investor confidence.
As a leading utility company in the Gulf Cooperation Council (GCC), Tabreed has been a pioneer in providing energy-efficient and sustainable cooling solutions. With a robust portfolio of 83 plants across the GCC, the company has been integral to the region's infrastructure. The new mandate with xCube is expected to further solidify Tabreed's market position by optimizing trading activity and enhancing market efficiency.
According to the agreement, xCube will facilitate trades of Tabreed's shares by providing continuous liquidity through two-way daily quotes. This initiative is in line with the guidelines set by the DFM and the Securities and Commodities Authority (SCA). Importantly, xCube's ownership of Tabreed shares will not exceed 5% of the total number of listed shares, ensuring regulatory compliance and market stability.
Tabreed's CEO, Khalid Al Marzooqi, expressed optimism about the partnership, stating, 'It supports our broader vision of enhancing trading liquidity in Tabreed shares, improving price transparency, and enabling greater investor participation, aligning with Tabreed's commitment to shareholder value and sustainable growth.'
In recent financial results, Tabreed reported a normalized net profit before tax of AED 291 million for the first half of 2024, marking a 4% year-on-year increase. This growth is attributed to higher consumption volumes and sustained business expansion, underscoring the company's strong financial footing.
Given the strategic partnership with xCube and the company's solid financial performance, investors might consider holding onto their Tabreed shares. The collaboration with xCube is a forward-thinking approach that could lead to enhanced liquidity and potentially more stable share prices, benefiting all stakeholders in the long run.
Source
Summary
Tabreed, a leading district cooling company, has partnered with xCube to serve as the Liquidity Provider for its shares on the Dubai Financial Market (DFM). This collaboration aims to improve trading liquidity, enhance market efficiency, and boost investor confidence. xCube will facilitate trades by providing continuous liquidity and fair pricing, with its ownership of Tabreed shares not exceeding 5% of the total listed shares. The partnership aligns with Tabreed’s goals of increasing trading liquidity, price transparency, and investor participation. Tabreed recently reported strong financial results for the first half of 2024, with a 4% increase in normalized net profit before tax, driven by higher consumption volumes and business expansion.
