Al Ansari raises $210m in IPO as order book nears $3.5bn

Al Ansari Exchange

UAE-based remittance and foreign exchange house Al Ansari Financial Services has raised AED773 million ($210.5 million) in its initial public offering (IPO) after setting the offering price at AED 1.03 per share. 

The order book stood at more than AED12.7 billion ($3.46 billion), meaning it was 22 times oversubscribed.

Dubai-based Shariah-compliant savings scheme provider National Bonds Corporation has committed to a cornerstone investment of AED200 million.

A total of 750 million shares, equivalent to 10 percent of the group’s issued share capital, will begin trading on the Dubai Financial Market (DFM) on April 6. 

At the final price, and upon listing, the dividend yield will be a minimum of 7.8 percent, with the market capitalisation at AED7.73 billion ($2.10 billion). 

The UAE retail offer, which was increased from five percent to 7.5 percent of the 750 million ordinary shares on offer, received very high demand with an oversubscription of nearly 44 times.

Investors will be notified of their allocation of shares on March 29.

Following the completion of the IPO, Al Ansari Holding will continue to own 90 percent of the group’s issued share capital. 

Mohammad Ali Al Ansari, chairman of Al Ansari Financial Services, said that the tremendous investor interest across the UAE, regional and international investors demonstrates the company’s strong brand reputation.

Rashed Ali Al Ansari, group chief executive officer of Al Ansari Financial Services, stated: “Through this IPO and as a publicly listed company, we are offering investors an opportunity to be part of a business that has significant growth opportunities driven by the UAE and other GCC countries’ favourable macroeconomic and industry trends.”

He added that the listing would also give the firm the acquisition currency to realise its regional growth ambitions.  

The company’s foreign exchange operations started as an offshoot of a trading business of the Al Ansari family almost 60 years ago, opening its first branch in Abu Dhabi in 1966. It has since grown to a network of 231 branches, employing more than 3,500 people and catering to over three million customers.