- A total of 750 million (750,000,000) ordinary shares (the “Shares”), equivalent to 10% of Al Ansari Financial Services’ (the “Group”) issued share capital, will be offered, with Al Ansari Holding LLC (the “Selling Shareholder”), reserving the right to increase the size of the Global Offering
- The Group is expected to distribute a minimum dividend of AED 600 million with respect to 2023, implying a minimum dividend yield of 7.77% - 8.00% assuming the above Offer price range
- National Bonds Corporation (“National Bonds”) has committed to a cornerstone investment in the IPO with a total commitment of AED 200 million (US$ 54.5 million)
- The IPO subscription period starts today and runs until 23 March 2023 for the UAE Retail Offering and 24 March 2023 for the Qualified Investor Offering
- The final offer price will be determined through a book-building process and is expected to be announced on 27 March 2023
- Admission of the shares to trading on the DFM is expected on 6 April 2023
- The Offering is compliant with Sharia principles and the Internal Sharia Supervision Committees of Emirates NBD and ADCB have issued pronouncements to this effect
Al Ansari Financial Services PJSC (under incorporation in the Emirate of Dubai, UAE, as a Public Joint Stock Company) (“Al Ansari Financial Services” or the “Group” or the "Company"), one of the leading integrated financial services groups in the UAE, today announces the offer price range per share and the start of the subscription period for its initial public offering (“IPO or the “Global Offering”) on the Dubai Financial Market (“DFM”).
DETAILS OF THE OFFERING PRICE RANGE
The price range for the Global Offering has been set at between AED 1.00 and AED 1.03 per share, implying a market capitalisation at listing of between AED 7.50 billion (US$2.04 billion) and AED 7.73 billion (US$ 2.10 billion).
A total of 750 million (750,000,000) shares, equivalent to 10% of the Group’s issued share capital, will be offered, resulting in a total Offering size of between AED 750 million (US$ 204 million) and AED 773 million (US$ 210 million).
All of the Shares are existing shares, with Al Ansari Holding selling 10% of its ownership in the Group. The Group will not receive any proceeds from the Global Offering. Following the Global Offering, and subject to the size of Global Offering not being increased, the Selling Shareholder will continue to hold a stake of 90%.
Al Ansari Holding reserves the right to amend the size of the Global Offering at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of the SCA.
Based on the dividend policy approved by the Board of Directors, the Group is expected to distribute a minimum dividend of AED 600 million with respect to 2023 with the first half of the payment being made in October 2023 and the second half of the payment made in April 2024. As such, the offer price range implies a minimum dividend yield of c. 7.77% to c. 8.00% with respect to the 2023 financial year.
As previously announced, the Global Offering is available to the following subscribers:
- to individual and other investors relating to the UAE Retail Offer (the “UAE Prospectus”) as part of the UAE Retail Offer; and
- to professional investors and other investors in a number of countries, including in the UAE, as part of the Qualified Investor Offering and the Exempt Offer (the “Qualified Investor Offering”).
Further, the Emirates Investment Authority (the “EIA”) shall be entitled to subscribe for up to 5% of the Global Offering, and the percentage of Shares which the EIA may purchase shall be allocated in full before the commencement of allocation to any other Subscribers to the Qualified Investor Offer.
The IPO subscription period starts today and runs until 23 March 2023 for the UAE Retail Offering and 24 March 2023 for the Qualified Investor Offering.
The final offer price will be determined through a book-building process and is expected to be announced on 27 March 2023.
The completion of the Offering and Admission is currently expected to take place on 6 April 2023, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.
Details of the Offering are available in the UAE Prospectus with respect to the UAE Retail Offering and the English-language International Offering Memorandum with respect to the Qualified Investor Offering. The UAE Prospectus and the International Offering Memorandum are available at aafs.ae/ipo.
Abu Dhabi Commercial Bank PJSC ("ADCB"), EFG-Hermes UAE Limited ("EFG Ltd.") acting in conjunction with EFG Hermes UAE LLC ("EFG LLC" and together with EFG Ltd., "EFG-Hermes") and Emirates NBD Capital PSC ("ENBD Capital") have been appointed as joint global coordinators.
Emirates NBD Bank PJSC (“Emirates NBD”) has been appointed as the Lead Receiving Bank. ADCB, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank LLC, Commercial Bank of Dubai PSC, Dubai Islamic Bank PJSC and Emirates Islamic Bank PJSC have been appointed as Receiving Banks. In addition to the receiving banks that were announced on 9 March 2023, National Bank of Ras Al-Khaimah Bank PSC (“RAKBANK”) has also been added as a receiving bank.
On 16 March 2023, the Company entered into a cornerstone investment agreement with National Bonds Corporation Sole Proprietorship P.S.C. (“National Bonds”), which has committed AED 200 million to the IPO, subject to the final offer price being determined, with their shares subject to a 180-day lock-up arrangement, following listing.
National Bonds is a leading investment company in UAE that caters to a substantial and diversified client base of retail customers, high-net-worth individuals, and corporations through its innovative Sharia approach to financial and investment products. With a 16-year partnership, National Bonds is a longstanding client and strategic partner of the Group.
National Bonds is a UAE-based company established in 2006 and fully owned by the Investment Corporation of Dubai, the investment arm of the Dubai Government.
The Internal Sharia Supervision Committees of Emirates NBD and ADCB have issued pronouncements confirming that, in their view, the Global Offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the Global Offering is Sharia-compliant for their own purposes.