Al Ansari Financial Services Group announced today, Monday, that it has set the final offering price at AED 1.03 per share, which is the upper limit of the previously announced price range, after completing the book-building process for its initial public offering on March 24, 2023.
According to a company statement, the offering attracted a large demand from the segment of professional investors and the segment of individual investors alike in the UAE, as the total demand for shares exceeded 12.7 billion dirhams (including the main investor, National Bonds Company), while the group raised 773 million dirhams of it.
With the exception of the initial investor commitment of 200 million dirhams, the level of subscription exceeded the target value of all tranches combined by about 22 times according to the final price.
Professional investors have seen over AED 10.2 billion in subscriptions, including a commitment of AED 200 million from National Bonds Corporation.
With the exception of the Initial Investor Commitment, requests from qualified professional investors were oversubscribed by more than 19 times.
The offering of professional investors witnessed a strong demand among regional and international investors alike, with good participation from investors from the UAE, Saudi Arabia and the rest of the Gulf Cooperation Council countries, which reflects the strength of the brand that the group has built over nearly sixty years in the local and regional market.
In turn, individual investors in the UAE witnessed a large demand, with a value exceeding 2.5 billion dirhams, with the number of applications submitted through receiving banks and the Dubai Financial Market electronic platform reaching approximately 15,000.
In response to the great demand from individual investors, the selling shareholder, Al Ansari Holding Company, exercised its right to increase the allocation of the offering to individual investors in the UAE to 56.25 million shares, representing 7.5% of the total offering shares.
750 million shares, representing 10% of the total issued shares in the group’s capital, will be listed for trading on the Dubai Financial Market on April 6, 2023.
According to the final offering price upon listing, the dividend yield will be at least 7.8%, and the group’s market capitalization will be AED 7.73 billion ($2.10 billion).
After the completion of the initial public offering, Al Ansari Holding will continue to hold 90% of the issued share capital of the group.
It is expected that Al Ansari Financial Services Group shares will start trading under the symbol “ALANSARI” and the ISIN code “AEE01198A238”. Investors participating in the UAE Retail Investor Offering will be notified of the allocation of their shares through SMS on March 29, 2023.
