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UAE: Al Ansari announces IPO price range starting at Dh1; subscription begins today

The group is expected to distribute a minimum dividend of Dh600 million for 2023, implying a yield of 7.77 to 8 per cent

Published: Thu 16 Mar 2023, 8:29 AM

Updated: Thu 16 Mar 2023, 5:08 PM

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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.

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