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The UAE-based Al Ansari Financial Services has set the price range for its IPO between 1 UAE dirham ($0.27) and 1.03 UAE dirhams, implying a market capitalisation of up to 7.73 billion UAE dirhams ($2.10 billion) upon listing.
The family owning the financial services company is selling a 10% stake, or 750 million shares, in the IPO and will list on the Dubai Financial Market.
The final price will be determined through a book-building process and is expected to be announced on March 27, 2023, Al Ansari said in a statement on Thursday.
The company said it entered into a cornerstone investment agreement with National Bonds Corporation, which has committed 200 million UAE dirhams to the IPO, subject to the final offer price being determined. The shares that will accrue to National Bonds will be subject to a 180-day lock-up arrangement following listing.
Meanwhile, the Internal Sharia Supervision Committees of UAE-based banks, Emirates NBD and Abu Dhabi Commercial Bank said the offering is Shariah-complaint.
Al Ansari is targeting a minimum dividend of 600 million UAE dirhams for 2023, to be paid in October and in April next year. It also proposes a minimum dividend pay-out ratio of at least 70% of the net profit, paid semi-annually going forward.
Abu Dhabi Commercial Bank, EFG Hermes UAE and Emirates NBD Capital have been mandated as joint global coordinators for the IPO, the statement said.
Al Ansari Exchange, one of the largest in the UAE, was set up nearly 60 years ago and has 200 branches throughout the country. The firm offers exchange services, remittances and payroll solutions.
(Reporting by Brinda Darasha; editing by Seban Scaria)
