Al Ansari completes IPO, raising AED773 million

Al Ansari Financial Services has completed the book building and subscription process for the IPO on March 24, setting the final offer price set at AED1.03 per share, which is at the top end of the price range.

The offering raised AED773 million, with the global offering oversubscribed 22 times on average.

The IPO attracted considerable demand from both the qualified investor offering and the UAE retail offer, with total gross demand reaching more than AED12.7 billion, including cornerstone investor National Bonds. Excluding the cornerstone tranche of AED200 million.

The qualified investor offering drew more than AED 10.2 billion in orders, including the AED 200 million commitment from National Bonds. 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 in orders, and the total number of applications through the Receiving Banks and DFM’s online platform reaching almost 15,000.

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 per cent 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," highlighted Mohammad Ali Al Ansari, Chairman of Al Ansari Financial Services.

A total of 750 million shares, equivalent to 10 per cent of the Group’s issued share capital, will be admitted for trading onto the DFM on April 6. At the final price, and upon listing, the dividend yield will be a minimum of 7.8 per cent and the market capitalisation of the Group will be AED7.73 billion.

Following the completion of the IPO, Al Ansari Holding will continue to own 90 per cent 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.