The owners of remittances and money exchange firm Al Ansari Financial Services plan to raise as much as $210.3 million in an initial public offering in Dubai, set to be the emirate’s first listing of the year.
(Bloomberg) — The owners of remittances and money exchange firm Al Ansari Financial Services plan to raise as much as $210.3 million in an initial public offering in Dubai, set to be the emirate’s first listing of the year.
The price range has been set at 1 dirham to 1.03 dirhams (28 cents) per share, according to an advertisement in Gulf News on Thursday. Al Ansari Holding LLC is selling 750 million shares in the offering, or a 10% stake.
Al Ansari is the first IPO in Dubai this year, as well as one of the first family-owned businesses in the United Arab Emirates to go public. Last year, listings in the city raised a combined $8.5 billion amid a privatization drive designed to increase trading volumes and catch up with IPO activity in neighboring Abu Dhabi and Riyadh.
The Middle East continues to be a bright spot for IPOs globally after high oil prices buoyed stock markets and drove investor inflows last year. This week, Adnoc Gas surged as much as 25% on its Abu Dhabi debut after the world’s largest IPO of 2023 while Abraj Energy Services also jumped on its first day of trading in Oman.
Most of last year’s IPOs in Dubai were state-owned, making Al Ansari a rare private company listing. Dubai is encouraging private and family-owned businesses to list, though the mixed performance of last year’s crop might deter potential issuers.
Only two out of last year’s five Dubai IPOs are currently trading above their offering prices, data compiled by Bloomberg show. School operator Taaleem Holdings PSC was the only privately-owned company to go public and has dropped about 12% from its IPO price.
- National Bonds Corp. has committed to a cornerstone investment in the Al Ansari IPO with a total commitment of 200 million dirhams
- Subscription period: March 16 to March 24
- Final offer price expected March 27 and trading debut expected April 6
Al Ansari Exchange was set up almost 60 years ago and currently has over 230 branches in the UAE, making it one of the largest exchange companies in the country. In addition to exchange services, it offers remittances, services for paying domestic workers, savings plans and cash management solutions for companies, according to its website.
Al Ansari posted a net profit of 595 million dirhams in 2022 and expects to pay a dividend of at least 600 million dirhams for 2023. The company is planning a minimum payout ratio of at least 70% of net profit after that, according to its prospectus.
Abu Dhabi Commercial Bank, EFG Hermes and Emirates NBD Capital are managing the IPO.
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