EFG Hermes announced on Saturday that it had advised on Al Ansari Financial Services (AAFS)’s £210.5m initial public offering (IPO) on the Dubai Financial Market (DFM).
EFG Hermes acted as joint global coordinator on the transaction, marking the company’s fourth joint global coordinator role in the past six months, among others including Taaleem’s $204 million IPO on DFM and The Pearl REIF’s $60.6 million -Dollar IPO on the Muscat Stock Exchange (MSX). in November 2022, in addition to Abraj Energy’s $244 million IPO on the MSX in March 2023.
At the listing, AAFS offered a total of 10% of its share capital, equivalent to 750,000,000 shares, at a nominal value of AED 1.03/share – representing a market capitalization of AED 7.73 billion (US$ 2.1 billion). The offer was oversubscribed 22 times and was priced at the upper end of the announced price range.
The IPO consisted of a qualified investor offering, which generated strong demand valued at AED10.2 billion from both international and regional investors, and a UAE retail offering, which generated demand valued at AED2.5 billion .
AAFS is one of the leading integrated financial services groups based in the United Arab Emirates and has over 50 years of experience in the money transfer and currency exchange business. Today, the family-run group has built a specialist financial ecosystem, offering cross-border payments, currency exchange solutions and access to the UAE’s Wage Protection System (WPS), alongside other services such as bill collection and prepaid cards, as well as payment technology solutions for consumers and businesses in the fast-growing payment industry – and the country’s currency exchange and remittance market.
The company traded today under the ticker ALANSARI.
Mohamed Fahmi, Co-Head of Investment Banking at EFG Hermes, commented: “We are delighted to have advised on another important transaction for the UAE – the first for a family business in the UAE in recent memory and a tremendous achievement, which applies directly, in line with the emirate’s quest to develop legacy businesses, boost broader economic activity and attract investment activity in a challenging global backdrop. Bucking the global trend, the GCC has seen investors increasingly drawn to its strong fundamentals and pushes towards deepening capital markets – a momentum we have used to lead some of the largest listings in the region, most recently ADNOC Gas the ADX and Abraj Energy on the MSX. As we assume our fourth joint role as global coordinator in less than six months, we plan to further expand our presence in the GCC to bring high-quality prospects to market that generate lucrative returns while enabling our clients to raise the capital they need for the implementation of their growth plans. ”
This transaction marks the company’s third IPO this year and the latest of several landmark deals EFG has advised Hermes on after the company completed 12 ECM transactions in 2022 valued at US$12.8 billion. Most recently, the practice advised on the $2.5 billion IPO of ADNOC Gas plc on the ADX and on the $244 million IPO of Oman-based Abraj Energy on the MSX. The department also advised on the first dual listing between the ADX and the Saudi Exchange in a $1.8 billion deal for Americana Restaurants International. It also advised on Taaleem’s $204 million IPO and Salik’s $1 billion listing on the DFM. In Abu Dhabi, the division completed advice on Borouge plc’s $2 billion listing on the ADX. In Saudi Arabia, EFG advised Hermes Investment Banking on the $400m IPO of Riyadh Cables on the Saudi Exchange. In Kuwait, the business advised on the US$323 million private placement of Ali Alghanim and Sons Automotive Company ahead of its IPO on the Boursa Kuwait.
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