IPO open for all investors from April 18th until May 1st 2011
Potential growth of Islamic insurance sector to attract investors
Subscription accepted at all NBAD branches
Abu Dhabi - UAE, April 17, 2011: The National Takaful Company "Watania", an Abu Dhabi based Sharia'a-compliant (Islamic) insurance company under establishment, will launch an Initial Public Offering (IPO) tomorrow to raise AED 82.5 million, representing 55% of the total share capital amid expectations of high participation due to strong growth potential of the Islamic insurance sector.
The National Bank of Abu Dhabi (NBAD) has been mandated as financial advisor, lead manager, and the receiving bank for the Watania IPO. Subscription will be accepted at all NBAD branches across the UAE starting from tomorrow (Monday) until May 1st 2011.
Watania's Founders have subscribed to an aggregate value of AED 67.5 million shares representing 45% of the total share capital of AED 150 million. The four founders, Abu Dhabi National Islamic Finance (ADNIF), Abu Dhabi National Insurance Company (ADNIC), Abu Dhabi National Energy Company (TAQA), and Aldar Properties (ALDAR), are among UAE's strongest institutions.
The offer price for each share is fixed at AED 1 with an additional AED 0.05 as subscription fee per offered share. The shares will be listed on the Abu Dhabi Securities Exchange (ADX)
The offering is over two tranches. The first tranche, comprised of twenty million shares, or 13.33% of the total capital, is open to UAE nationals individuals only, who can subscribe to 5,000 shares. The second tranche, which comprises 41.67% of the total capital, is allocated on a pro rata basis for all individual and institutional investors who can apply for a minimum of 10,000 shares, with additional subscriptions in multiples of 1,000 shares. The refund date has been set for May 15, 2011.
"Commitment of Watania's founding shareholders underscores the company's capital strength and the promise of the offering," said Aref Ismail Al Khouri, Chairman of Watania's Founders' Committee and Managing Director of ADNIF. "Watania will play a vital role in developing the growing Shariah-compliant insurance industry in UAE and to provide critical insurance support for all organizations participating in the realization of Abu Dhabi Vision 2030. The tremendous growth opportunities in this sector make Watania an attractive investment."
NBAD has a network of 113 branches, cash offices, and more than 450 ATMs to provide comprehensive banking services to customers all over the UAE, which makes it convenient for investors to subscribe in this IPO.
Recent statistics reveal that Takaful gross contributions grew at Compound Annual Growth Rate (CAGR) of 83% between 2004 -2009 whereas conventional premiums grew at a CAGR of 25% during the same period. Takaful gross contributions in the UAE are projected to grow at a CAGR of 30% between 2010 and 2014, outpacing growth in the overall insurance sector (CAGR of17%) during the same period.
"We believe that Watania Takaful will be able to implement its ambitious business plan and succeed with the support of the organization's founders and a seasoned management team, which has proven track record in the market and given the growth opportunities in the Takaful industry in the UAE and throughout the region, " said Ahmed Wahdan, the Head of equity capital markets at NBAD's Investment Banking Group.
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About Watania (under establishment)
Watania is an Abu Dhabi based Islamic insurance company (under establishment) with a paid up capital of AED 150 million. Watania's founding shareholders are among Abu Dhabi's leading institutions across key industries, and they are Abu Dhabi National Islamic Finance (ADNIF), Abu Dhabi National Insurance Company (ADNIC), Abu Dhabi National Energy Company (TAQA) and Aldar Properties (ALDAR), who own collectively 45% of the shares while the 55% left will be available in an Initial Public Offering (IPO) for UAE, Arab and international investors.
Watania offers a unique suite of Shariah-compliant products that meet the needs of all individual and corporate customers, and has been established to play a central role in developing the increasingly popular Shariah-compliant insurance industry in UAE. The company is guided by a seasoned management team with extensive knowledge and expertise in the Takaful industry as well as a proven track record in the UAE and regional market.
For more information please contact:
Ehab Khairi - Media & PR Manager
National Bank of Abu Dhabi
Tel: 02-6111190
Ehab.khairi@nbad.com
Farah Ibrahim - Media Relations Manager
TRACCS Public Relations
Tel: 04-3672530
farah.ibrahim@traccs.net
© Press Release 2011
