Al Ansari announces IPO price range starting at Dh1, subscription begins today

Al Ansari Financial Services on Thursday announced the offer price range per share and the start of the subscription period for its Initial Public Offering (IPO) on the Dubai Financial Market (DFM).

The price range for the Global Offering has been set at between Dh1.00 and Dhs1.03 per share, implying a market capitalisation at a listing of between Dhs7.50 billion ($2.04 billion) and Dhs7.73 billion ($2.10 billion).

A total of 750 million (750,000,000) shares, equivalent to 10% of the Group’s issued share capital, will be offered, resulting in a total Offering size of between Dhs750 million ($204 million) and Dhs773 million ($210 million).

All the shares are existing shares, with Al Ansari Holding selling 10% of its ownership in the Group. The Group will not receive any proceeds from the Global Offering. Following the Global Offering, and subject to the size of the Global Offering not being increased, the Selling Shareholder will continue to hold a stake of 90%.

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 Securities and Commodities Authority (SCA).

Based on the dividend policy approved by the Board of Directors, the Group is expected to distribute a minimum dividend of Dhs600 million with respect to 2023 with the first half of the payment being made in October 2023 and the second half of the payment made in April 2024. As such, the offer price range implies a minimum dividend yield of c. 7.77% to c. 8.00% with respect to the 2023 financial year.

As previously announced, the Global Offering is available to individual and other investors relating to the UAE Retail Offer (UAE Prospectus) as part of the UAE Retail Offer; and to professional investors and other investors in a number of countries, including in the UAE, as part of the Qualified Investor Offering and the Exempt Offer (Qualified Investor Offering).

Further, 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 IPO subscription period starts today and runs until 23rd March 2023 for the UAE Retail Offering and 24th March 2023 for the Qualified Investor Offering.

The final offer price will be determined through a book-building process and is expected to be announced on 27th March 2023.

The completion of the Offering and Admission is currently expected to take place on 6th April 2023, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.

WAM