Al Ansari Financial Services IPO: subscription starts, share price announced

Dubai-based integrated financial services group Al Ansari Financial Services has announced the offer price range per share and the start of the subscription period for its initial public offering (IPO).

The price range for the global offering from has been set between Dhs1-1.03 per share, implying a market capitalisation at listing of between Dhs7.50bn ($2.04bn) and Dhs7.73bn ($2.10bn), according to a statement it released on March 16.

Read: UAE’s Al Ansari Financial Services to list 10% stake in DFM IPO

A total of 750 million (750,000,000) shares, equivalent to 10 per cent of the group’s issued share capital, will be offered, resulting in a total offering size of between Dhs750m ($204m) and Dhs773m ($210m).

All of the shares are existing shares, with Al Ansari Holding selling 10 per cent of its ownership in the group.

The group will not receive any proceeds from the global offering.

According to the statement, following the global offering, and subject to its size not being increased, the selling shareholder will continue to hold a stake of 90 per cent.

Al Ansari Holding reserves the right to amend the size of the global offering at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of the SCA, it mentioned in a statement.

Al Ansari Financial Services, one of the leading integrated financial services groups in the UAE, is excited to announce its intention to list on the Dubai Financial Market.

For more info, visit our dedicated page https://t.co/LOXvRDNl0U#AAFSIPO @AlAnsariFin pic.twitter.com/YtvoVD7Vir

— Al Ansari Exchange (@AlAnsariEx) March 9, 2023

Based on the dividend policy approved by its board of directors, Al Ansari Financial Services is expected to distribute a minimum dividend of Dhs600m with respect to 2023 with the first half of the payment being made in October and the second half of the payment made in April 2024.

As such, the offer price range implies a minimum dividend yield of circa 7.77 per cent to 8 per cent with respect to FY 2023.

Al Ansari Financial Services IPO subscription period

The IPO subscription period 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.

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, according to the company.

Joint global coordinators involved in the IPO

ADCB, EFG-Hermes and ENBD Capital have been appointed as joint global coordinators.

Meanwhile, Emirates NBD has been appointed as the lead receiving bank, with ADCB, Abu Dhabi Islamic Bank, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank and Emirates Islamic Bank additionally appointed as receiving banks.

Cornerstone investment agreement with National Bonds

On March 16, the company also entered into a cornerstone investment agreement with National Bonds, which has committed Dhs200m to the IPO, subject to the final offer price being determined, with their shares subject to a 180-day lock-up arrangement, following listing.

National Bonds, which was established in 2006, is fully owned by the Investment Corporation of Dubai, the investment arm of the Dubai Government.

It caters to a substantial and diversified client base of retail customers, high-net-worth individuals, and corporations through its innovative Sharia approach to financial and investment products.

The Internal Sharia Supervision Committees of Emirates NBD and ADCB have issued pronouncements confirming that, in their view, the global offering is compliant with Shariah principles.