UAE's Finance House insurance unit plans IPO

Abu Dhabi-based firm's offering will be $17.97m; IPO likely in February or March
UAE's Finance House insurance unit plans IPO
FLOAT PLAN Abu Dhabi’s Finance House will launch an IPO of its insurance unit in February or March by offloading a 55 percent stake (Getty Images)
By Karen Leigh
Thu 27 Jan 2011 01:12 PM

Abu Dhabi’s Finance House will launch an IPO of its insurance unit in February or March by offloading a 55 percent stake.

Emirates 24/7 reported that the size of the IPO will be AED66m ($17.97m), listed on the Abu Dhabi Securities Exchange. Finance House’s share capital is AED120m.

It said Mashreq Bank and National Bank of Abu Dhabi will be the lead receiving banks.

Finance House offloaded stake in Mountain Gate Property Investment and rose its stake in brokerage firm Gulf National Securities Centre.

It sold off a 25 percent share in Mountain Gate – a labour accommodation services entity – for an undisclosed amount and increased its stake in Gulf National by 15 percent, to 25 percent.

The Abu Dhabi firm's borrowing from commercial banks more than doubled last year, 24/7 said.

Statements show it borrowed AED152m from local banks and AED155m from international institutions, a total of AED308m in 2010 versus AED147m in 2009.

Its earnings per share rose to 42 fils last year, up one fil.

On Wednesday its said its net profit increased to AED115m in 2010, from AED112m last year.

Its Board of Directors proposed a cash dividend of 15 percent and stock dividend of 10 percent, 24/7 said.

Total assets increased by 15 percent, to AED3bn.

"During the past year, we have worked hard to realign our business model and continuously fine-tuned our operating strategies in line with the rapidly changing realities of our economic environment,” chairman Mohammed Abdulla Al Qubaisi told 24/7.

“Our steady 2010 performance atop the already robust 2009 performance is a clear vindication that we are headed in the right direction and an evidence of the continued success of our vision and robust strategic planning during a period of ongoing challenges in the financial environment worldwide.”

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.