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

UAE’s Al Ansari Financial Services has announced its intent to float 750 million ordinary shares, in the form of an initial public offering (IPO) on the Dubai Financial Market (DFM).

The shares, each holding a nominal value of one fil (Dhs0.01), represent 10 per cent of the entity’s existing share capital. All shares to be offered represent the sale of existing shares held by Al Ansari Holding, which is the sole shareholder of Al Ansari Financial Services.

Read: UAE exchange firm Al Ansari considers Dubai IPO

The global offering will be made available to individual and other investors as part of the UAE retail offering, which will run from March 16-23, 2023. It will also be made available to professional and other investors outside the US, including the UAE, as part of the qualified investor offering, which will close a day later.

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

The Emirates Investment Authority shall be entitled to subscribe for up to 5 per cent of the global offering.

The company plans to list the shares for trading on the bourse on or around April 6, 2023. subject to regulatory approvals.

The company aims to adopt a semi-annual dividend distribution policy, targeting to pay a minimum dividend of Dhs600m with respect to 2023 earnings.

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.

“Since the founding of our first company Al Ansari Exchange in 1966, Al Ansari Financial Services has been playing an essential role in the mobility of money within and outside the UAE. We are equally proud to be the trusted partner to local businesses and international institutions, supporting their cross-border money transfer, currency exchange and end-to-end cash management requirements,” said Mohammad Ali Al Ansari, chairman of Al Ansari Finance Services.

Al Ansari Financial Services is a financial services group, whose subsidiaries include Al Ansari Exchange, Al Ansari Exchange Kuwait (full acquisition by the Group is currently ongoing and expected to be completed post-IPO), Worldwide Cash Express, CashTrans and Al Ansari Digital Pay (under incorporation in the UAE, which aims to create an inclusive digital wallet). The company has a workforce of 4,123 as of December 31, 2022.

“As a market leader with an agile and CAPEX-light business model, which enables us to generate strong growth with limited investment capital requirements, and a very healthy cash profile, we believe we can harness favourable market trends in the UAE and across the GCC,” addedRashed Ali Al Ansari, group chief executive officer of Al Ansari Financial Services.

“Those organic growth drivers include an increase in the number of tourists, continued population growth with a large expatriate community. Furthermore, we are well positioned to capitalise on the strong macroeconomic backdrop with the UAE and other GCC economies which are expected to expand at a healthy pace in the mid-term.”