Dubai March 9 2023: Al Ansari Financial Services said it plans to sell a 10% stake in its Dubai initial public offering, marking the emirate’s first listing this year.
Al Ansari Holding LLC will offer 750 million shares in the listing, according to a statement on Thursday. Al Ansari will take orders from retail investors from March 16 to March 23, and institutional investors until March 24. The listing is slated for on or around April 6.
The IPO is set to be the first in Dubai this year after the city recorded the largest offering in the Middle East in 2022 when Dubai Electricity & Water Authority PJSC’s raised $6.1 billion. The region has been a bright spot for IPOs globally after high oil prices buoyed stock markets and drove investor inflows.
In total, IPOs in Dubai raised a combined $8.5 billion last year in a privatization drive to increase trading volumes and catch up with listing activity in neighboring Abu Dhabi and Riyadh.
Al Ansari will be a rare private sector IPO in the UAE, where most of the listing candidates have been state-owned. Dubai is encouraging private and family-owned businesses to list, though the mixed performance of last year’s IPOs might deter potential candidates.
Privately Owned
Out of last year’s five offerings in Dubai, school operator Taaleem Holdings PSC was the only privately-owned company to go public. It has dropped about 14% from its offer price since listing in November.
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 and savings plans, according to its website.
Retail investors will be allocated 5% of the offering and institutional investors the remainder. Emirates Investment Authority will be entitled to subscribe to as much as 5% of the IPO.
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, double what it paid last year. The company is planning a minimum payout ratio of at least 70% of net profit after that, it said.
