Khaleej Times, Thursday, Mar 16, 2023 | Sha'ban 24, 1444
UAE: Al Ansari announces IPO price range starting at Dh1; subscription begins today
Emirates:
Al Ansari Financial Services on Thursday announced details for its initial
public offering (IPO), setting the price range between Dh1 and Dh1.03 per share.
With this range, the company could rake in between Dh7.50 billion (US$ 2.04
billion) and Dh7.73 billion (US$ 2.10 billion) upon listing.
A total of 750 million ordinary shares — equivalent to 10 per cent of Al Ansari
Financial Services’ issued share capital — will be offered, with Al Ansari
Holding LLC reserving the right to increase the size of the global offering.
The IPO subscription period starts today and runs until March 23 for the UAE
Retail Offering and March 24 for the Qualified Investor Offering.
The final offer price will be determined through a book-building process and is
expected to be announced on March 27.
Based on the dividend policy approved by the board of directors, the group is
expected to distribute a minimum dividend of Dh600 million with respect to 2023
— with the first half of the payment being made in October 2023 and the second
half in April 2024. The offer price range implies a minimum dividend yield of
7.77 to 8 per cent for this financial year.
Who can subscribe
As previously announced, the global offering is available to the following
subscribers:
Individuals and other investors relating to the UAE Retail Offer
Professional investors and other investors in a number of countries,
including in the UAE, as part of the Qualified Investor Offering and the
Exempt Offer
The Emirates Investment Authority (EIA) shall be entitled to subscribe for up to
5 per cent of the Global Offering, and the percentage of shares which the EIA
may purchase shall be allocated in full before opening them to any other
subscriber or qualified investor offer.
The completion of the offering and admission is currently expected to take place
on April 6, subject to market conditions and obtaining relevant regulatory
approvals in the UAE, including approval of admission to listing and trading on
the DFM.
Abu Dhabi Commercial Bank, EFG-Hermes UAE Limited, and Emirates NBD Capital have
been appointed as joint global coordinators.
Emirates NBD has been appointed as the lead receiving bank. ADCB, Abu Dhabi
Islamic Bank, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic
Bank and Emirates Islamic Bank have been appointed as other receiving banks. The
National Bank of Ras Al-Khaimah Bank PSC (“RAKBANK”) has also been added to the
list.