Dubai, UAE – Al Ansari Financial Services on Monday announced it has set the final offer price for its IPO at AED1.03 per share ($0.26), at the top of the previously announced price range.
The announcement follows the completion of the book building and subscription process for its IPO on March 24, 2023. The company has raised AED773 million ($195 million).
The Global Offering attracted considerable demand from both the Qualified Investor Offering and the UAE Retail Offer with total gross demand reaching more than AED12.7 billion ($3.3 billion), including cornerstone investor National Bonds. Excluding the cornerstone tranche of AED200 million ($51 million) and based on the final price, the Global Offering was oversubscribed 22 times.
The Qualified Investor Offering drew more than AED10.2 billion ($2.52 billion) in orders, including the AED200 million ($51 million) commitment from National Bonds Corporation Sole Proprietorship. Excluding the cornerstone tranche, qualified investor books were more than 19 times covered.
The Qualified Investor Offering saw strong demand from both international and regional investors, with a good representation from the UAE, Saudi Arabia and other GCC countries, highlighting the strong brand recognition of the Group across the GCC region.
The UAE Retail Offer drew significant demand with more than AED2.5 billion ($63 billion) in orders, and the total number of applications through the Receiving Banks and DFM’s online platform reaching almost 15 thousand.
In response to the demand from retail investors, as previously announced, the Selling Shareholder, Al Ansari Holding LLC, exercised its right to increase the allotment to the UAE Retail Offer to 56.25 million shares, which represents 7.5 percent of the total number of shares on offer.
“The remarkable investor interest we drew from across the UAE, regional and international investors demonstrates the strong brand reputation that Al Ansari Financial Services has built over its long and rich history,” Mohammad Ali Al Ansari, Chairman of Al Ansari Financial Services, said. “It is also a testament to the attractiveness of the UAE and wider GCC economies and the investment community’s confidence in Dubai’s public equity markets and the DFM.”
Rashed Ali Al Ansari, Group Chief Executive Officer of Al Ansari Financial Services, said that as a publicly listed company, they intend to further build credibility and increase transparency with existing stakeholders, as well as attract new partners and enter new markets.
“It will also give us the acquisition currency we need to realise our regional growth ambitions. Finally, we plan to attract and retain the best talent. We look forward to an exciting new chapter and further building on our legacy together with our new shareholders,” he said.
A total of 750,000,000 shares, equivalent to 10 percent of the Group’s issued share capital, will be admitted for trading onto the DFM on April 6, 2023. At the final price, and upon listing, the dividend yield will be a minimum of 7.8 percent and the market capitalisation of the Group will be AED7.73 billion (US$ 2.10 billion).
Following the completion of the IPO, Al Ansari Holding will continue to own 90 pecent of the Group’s issued share capital.
Al Ansari Financial Services is expected to commence trading under the symbol “ALANSARI” and ISIN “AEE01198A238”. Investors that participated in the UAE Retail Offering will be notified of their allocation of shares via SMS on March 29, 2023.