DUBAI, March 9 (Reuters) – The United Arab Emirates-based exchange house Al Ansari Financial Services announced on Thursday that it plans to list 10% of the company in an initial public offering (IPO) on the Dubai Financial Market (.DFMGI).
The subscription period for the offering of 750 million shares runs between March 16 and March 24, and the shares are expected to list on or around April 6, the company said in a statement.
Bucking the global trend, the Middle East raised about $21.9 billion through IPOs last year, according to Dealogic. That was more than half of the entire Europe, Middle East and Africa region.
Last week, state oil giant Abu Dhabi National Oil Co raised around $2.5 billion from an IPO of its gas business.
Al Ansari said Abu Dhabi Commercial Bank (ADCB.AD), EFG Hermes UAE and Emirates NBD Capital have been mandated as joint global coordinators for the IPO.
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The company, which started as a family business in 1966, is one of the largest stock exchange transactions in the region. At the end of 2022, it operated 231 physical stores and employed 4,123 people.
The company posted a net profit of 595 million dirhams ($162.01 million) last year, compared to 491 million dirhams in 2021. Operating profit increased to 1.15 billion dirhams from 988 million dirhams in 2021.
Al Ansari is targeting a minimum dividend of 600 million dirhams for 2023, to be paid in October and April next year.
“Going forward, a minimum payout ratio of at least 70% of net income generated (paid semi-annually) is expected,” the company said.
It continues to evaluate value-added investment opportunities for growth, but could pay a dividend above the minimum in the absence of suitable opportunities, Al Ansari said.
The Emirates Investment Authority, the UAE’s only sovereign wealth fund, has the right to subscribe for up to 5% of the offering, Al Ansari added.
($1 = 3.6727 UAE Dirham)
Reporting by Rachna Uppal; Writing from Yousef Saba; Edited by Tom Hogue and Subhranshu Sahu
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