Wednesday, March 22, 2023

Dubai’s first IPO of the year sold out in an hour – Usky News

Initial public offering of Dubai remittance and money exchange firm Al Ansari Financial Services Orders were received for all the shares within an hour of the books opening, marking a strong start for Emirates’ first listing of the year.
Al Ansari’s owners are seeking to raise up to $210 million in the IPO, with a price range of 1 dirham to 1.03 dirhams (28 cents) per share, according to a statement on Thursday. Al Ansari Holding LLC is selling 750 million shares, or a 10% stake, in the offering.
The order book was covered across the price range in less than an hour, according to terms of the deal seen by Bloomberg News, indicating strong demand for the offering despite broader market turmoil following the decline. Silicon Valley Bank and are concerned about the financial health of Credit Suisse Group AG.
The price range implies a dividend yield of at least 7.8% to 8%, which is higher than previous IPO candidates in the city and entices investors with juicy returns in a high interest rate environment.
Al Ansari is the first IPO in Dubai this year, as well as one of the first family-owned businesses to go public in the UAE. Last year, listings in the city raised a combined $8.5 billion amid a privatization drive designed to increase trading volume and catch up with IPO activity in neighboring Abu Dhabi and Riyadh.
The Middle East remains a bright spot for IPOs globally after high oil prices buoyed stock markets and increased investor inflows last year. This week, Adnoc Gas soared 25% on its debut in Abu Dhabi after the world’s biggest IPO of 2023, while Abraaj 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, although the mixed performance of last year’s crop could scare off potential issuers.
Data compiled by Bloomberg show only two out of five Dubai IPOs from last year are currently trading above their offer prices. school director Talim Holdings PSC was the only privately owned company to go public and lost about 12% from its IPO price.
Al Ansari Exchange was established almost 60 years ago and currently has over 230 branches in the UAE, making it one of the largest exchange companies in the country. Apart from exchange services, it also provides remittance, services for paying domestic workers, savings schemes and cash management solutions for companies, according to its website.
Al Ansari posted a net profit of AED 595 million in 2022 and expects to pay a dividend of at least AED 600 million for 2023. ,
Abu Dhabi Commercial Bank, EFG Hermes and Emirates NBD Capital Managing the IPO.


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