Al Ansari Financial Services, a leading integrated financial services group in the UAE, has announced an increase in the number of shares for its initial public offering (IPO), the company said in an emailed statement on Friday.
Following the approval of the Securities and Exchange Authority (SCA), Al Ansari Holding has increased the number of shares in the UAE Retail Offer of the IPO to 56,250,000 ordinary shares from 37,500,000 shares.
This decision was made in response to the strong demand from retail investors and elevated oversubscription of the UAE Retail Offer.
Last week, Al Ansari Financial set the IPO price with shares valued between AED1 and AED1.03.
The IPO offers a total of 750,000,000 shares, equivalent to 10 percent of Al Ansari Financial Services’ issued share capital.
With the increase in the allotment to the Retail Investor Tranche, the Qualified Investor Tranche will now be allotted 693,750,000 ordinary shares, instead of 712,500,000 shares.
Based on the previously announced price range of AED1.00 to AED1.03 per share, the size of the Retail Tranche will now be between AED56.3 million and AED57.9 million, representing a total of 7.5 percent of the IPO size.
All of the shares are existing shares, with Al Ansari Holding selling 10 percent of its ownership in Al Ansari Financial Services, which will not receive any proceeds from the Global Offering.
Following the IPO, the Selling Shareholder will continue to hold a stake of 90 percent.
The IPO subscription period remains unchanged, with the UAE Retail Offer having closed on March 23, 2023, and the Qualified Investor Offer scheduled to close on March 24, 2023.
The final offer price will be determined through a book-building process upon the close of the Qualified Investor Offer and is expected to be announced on or around March 27, 2023.
The completion of the Offering and Admission is currently expected to take place on April 06, 2023, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the Dubai Financial Market (DFM).
Al Ansari Financial Services announced plans to list 10 percent of the company in an IPO on the Dubai bourse on March 9.
Al Ansari intends to distribute dividends twice a year (in April and October) following its public offering.
The company has set a minimum dividend of AED600 million for the year 2023, which will be paid in two equal installments in October 2023 and April 2024.
Furthermore, Al Ansari aims to maintain a dividend payout ratio of at least 70 percent of its net profit in the future.
“The UAE’s global ranking as a tourist, commerce, talent and finance hub has steadfastly climbed over the years, thanks to government efforts and business-friendly policies, fuelling the growth and expansion of our business,” said Mohammad Ali Al Ansari, chairman of Al Ansari Finance Services.
“The UAE’s global ranking as a tourist, commerce, talent and finance hub has steadfastly climbed over the years, thanks to government efforts and business-friendly policies, fuelling the growth and expansion of our business,” he added.
The IPO follows ADNOC’s recent listing, which raised $2.5bn from the sale of a 5 percent stake in its gas business, making it the world’s largest IPO so far this year.
Al Ansari’s IPO also adds to the many listings in Dubai as well as the Gulf region.
The emirate aims to boost the size of its financial markets to about AED3 trillion, by listing 10 state-owned companies.
Middle East IPOs raised over $23 billion in 2022, compared with $7.52 billion raised from 20 offerings in the previous year.
Al Ansari Exchange: 60 years of success and growth
Al Ansari Exchange, a company that has been in operation for 60 years, has 231 branches in the UAE and provides services such as foreign exchange, remittances, payment services for domestic workers, and savings plans.
The company’s net profit increased by 21 percent in 2022 to reach AED595 million ($161.6 million) compared to the previous year, and it showed a significant growth of 59 percent compared to its 2020 results.
In 2022, the company also processed 22 million remittance transactions and the amount of money remitted increased by 4.8 percent to reach AED737 million compared to the previous year.
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