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DUBAI / WAM
Al Ansari Financial on Thursday announced its intention to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
In a press statement, Al Ansari said that 750,000,000 (seven hundred and fifty million) shares, each with a nominal value of AED0.01 (one fils) will be made available in the global offering, representing 10% of the company’s total existing share capital.
The statement added that Al Ansari Holding reserves the right to amend the size of the global offering at any time before the pricing of the global offering subject to the applicable laws of the UAE and the approval of the SCA.
Al Ansari Holding is Al Ansari Exchange’s only shareholder, and therefore it is the only selling shareholder. The global offering will be made available to individual and other investors as part of the UAE retail offering and to professional investors outside the United States of America, including the UAE, as part of the Qualified Investor Offering.
The Emirates Investment Authority (EIA) shall be entitled to subscribe for up to 5% of the global offering, and the percentage of shares which the EIA may purchase shall be allocated in full before the commencement of allocation to any other Subscribers to the Qualified Investor Offer.
The UAE retail offer subscription period is expected to open on March 16 and is expected to close on March 23.
The Qualified Investor Offer subscription period scheduled to open on March 16 and is expected to close on March 24.
The completion of the global offering and admission of the Shares to listing and trading on the DFM is currently expected to take place in April 2023, subject to satisfactory market conditions and obtaining regulatory approvals in the UAE, including approval of admission from the SCA.
The shares held by the Selling Shareholder following completion of the Global Offering shall be subject to a lock-up which starts on the date of admission and ends 180 days thereafter, subject to certain terms and conditions.
The Internal Sharia Supervision Committees of ADCB and Emirates NBD have issued pronouncements confirming that, in their view, the Global Offering is compliant with Shariah principles.
Abu Dhabi Commercial Bank (ADCB), EFG-Hermes UAE Limited (EFG Ltd.) acting in conjunction with EFG Hermes UAE LLC (EFG LLC and together with EFG Ltd., “EFG-Hermes”) and Emirates NBD Capital PSC (ENBD Capital) have been appointed as joint global coordinators.
Commenting on the launch of the IPO process, Mohammad Ali Al Ansari, Chairman of Al Ansari Finance Services, said, “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. Today, we are one of the UAE’s leading integrated financial services groups with a comprehensive offering. Furthermore, our customer-first and solutions-oriented mindset has enabled us to successfully scale the business and provide high-quality offerings that exceed customer expectations.”
Our strong track record of successful growth, underpinned by the trust we have built with our customers, partners, the CBUAE, and the Central Bank of Kuwait, has culminated in this milestone moment. We believe Al Ansari Financial Services is ready to become a publicly listed company and offer investors a unique investment opportunity with significant exposure to a region that is expected to witness robust growth in the mid-term.”
Rashed Ali Al Ansari, Group Chief Executive Officer of Al Ansari Financial Services, said, “Al Ansari Financial Services’ dominant and growing physical presence across the UAE and its leading position in the outward personal remittances and retail foreign currency market set us apart from other exchange houses. The broad spectrum of customers we service through in-person or digital channels gives us an edge over other players in the market providing similar services.
“Listing our shares on the DFM is a natural next step in our growth journey and will allow us to further boost our credibility with our key stakeholders. We believe this is the right time to present investors with an opportunity to join us on our new and exciting chapter and look forward to welcoming new shareholders to the Group.”