Al Ansari Financial Services, a UAE-based foreign exchange and payments transfer company, has received a bid of Dh12.7 billion ($3.45 billion) for its $210 million initial public offering (IPO). The first half of the dividend payment will be made in October 2023, and the second half in April 2024, with trading scheduled to begin on the Dubai Financial Market on April 6.
The IPO was oversubscribed by 22 times globally, with Dh773 million raised from the sale of a 10% stake. The company sold over 750 million shares and set the final share price at Dh1.03, implying a market capitalisation of Dh7.73 billion ($2.1 billion) at listing.
National Bonds Corporation, owned by the Investment Corporation of Dubai, has committed to investing Dh200 million in the IPO. Al Ansari Financial Services CEO, Rashed Al Ansari, stated that the IPO offers investors the opportunity to be part of a business with significant growth opportunities, driven by the GCC and the UAE’s favourable macroeconomic trends. Going public will also increase transparency with existing stakeholders, build credibility, and attract new partners, enabling the company to enter new markets with ease.
The Emirates Investment Authority is entitled to subscribe up to 5% of the offering, and the percentage of shares it may purchase will be allocated before any other qualified investors. Al Ansari expects to distribute a minimum dividend of Dh600 million for the 2023 financial year, translating to a minimum dividend yield of 7.77% to 8%. In 2022, IPOs in the Middle East raised over $23 billion, compared to the $7.52 billion raised in 2021 across 20 offerings. Al Ansari Exchange, established 60 years ago, has over 231 branches in the UAE, offering exchange services, a system to pay domestic workers, remittances, and a savings plan.
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