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PADICO launches Global Depository Receipts as a new investment tool

2011-06-27

Dr. Samir Huleileh, CEO of the Palestine Development and Investment "PADICO Holding” assured the importance of the results achieved by the promotional road show organized by the Palestine Stock Exchange on Thursday and Friday in London. During an interview with “Al Ayyam Newspaper”, Huleileh indicated that the participation of PADICO in this road show is the second, due to London"s importance as the capital of investment portfolios and funds that are interested in Emerging markets. He said that this round involved four companies in addition to the Palestinian Investment Fund, and targeted primarily to focus the attention on the Palestinian companies and the Palestinian Stock Market and to introduce their financial performance. Huleileh revealed that during the road show, "PADICO” launched new investment tools through signing an agreement with “Bank of New York Mellon” , which will represent PADICO in Global Depository Receipts “GDR”, where these receipts will be offered outside the framework of the market and the bank will assume responsibility for the offering and definition, noting that each receipt will equal to five shares and will be purchased from the market through brokerage firms.

Huleileh considered that the launch of this investment tool “GDR” constitutes a qualitative step in the performance of the Palestine Stock Exchange and in PADICO’s shares to be launched to the international market, expressing his hope that this step to be implemented during a period that doesn’t exceed a year and a half. Huleileh stressed out the importance of strengthening the relations between the Palestine Stock Exchange and Foreign Capital Markets, indicating within this context that during the Egyptian Revolution; twelve Egyptian publicly traded companies were able to continue their shares trading in the international markets despite closing Egypt Stock Market for about 43 days.

From his side, Ahmad Aweidah the CEO of the Palestine Stock Exchange pointed out to the importance of the mutual meetings held by each of the participant companies with the representatives of British and American Investment Funds in addition to London Stock Exchange’s representatives. He clarified that during the meetings; each company presented its activity and financial performance, and discussed the potential opportunities of mutual investments. Aweidah stated that the London Road Show is the fifth that is organized by the Palestine Stock Exchange, and assured that such an organization is now an annual routine to identify the PEX’s performance and what is distinguished by an attractive and encouraging incentives for foreign investments.