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Rashid Ali Al-Ansari, CEO of Al-Ansari Financial Services Group, said: The aim of listing the group on the Dubai Financial Market is growth and achieving the company’s goals, stressing that 10% will be sufficient.
Al-Ansari added, in statements to Al-Bayan, on the sidelines of the company’s announcement of listing on the Dubai Financial Market: The company will be the first to be listed on the Dubai market in 2023, expecting an increase of 60 new branches during the next five years to cover market demands.
The final offering price will be determined through the book-building process and is expected to be announced on March 27. The shares are expected to be listed on the Dubai Financial Market on April 6. Al-Ansari pointed out that the company’s share of the remittance market in the UAE amounted to 38%, and that of individual remittances at the global level, about 2.6%, stressing that the main goal of expansion is to reach the largest possible number of customers in the UAE through branches, despite the growth of electronic transactions. Last Friday, the subscription to the “Al Ansari Financial Services” group for professional investors ended, and was preceded last Thursday by closing the subscription door to individual investors in the Emirates.
Increase availability for individuals
In response to the large demand from individual investors, the Al Ansari Financial Services Group announced the exercise of its right to increase the number of offering shares allocated to individual investors in the UAE within the initial public offering of the group from 37.5 million ordinary shares to 56.25 million ordinary shares after the selling shareholder obtained the The approval of the Securities and Commodities Authority.
The volume of the offering remains the same at 750 million ordinary shares, representing 10% of the total issued shares in the capital of Al-Ansari Financial Services, so that the total volume of the offering ranges between 750 million dirhams and 773 million dirhams, with a price range between 1.00 and 1.03 dirhams per share. It means that the market value of the group ranges between 7.5 billion dirhams and 7.73 billion dirhams upon listing. As a result of the selling shareholder’s decision to increase the volume of shares allocated to the individual investor segment, 693.75 million ordinary shares will be allocated to the professional investor segment instead of 712.5 million ordinary shares.
Based on the previously announced price range, which ranged between 1 and 1.03 dirhams per share, the value of shares allocated to the individual investor segment will now range between 56.3 and 57.9 million dirhams, representing 7.5% of the initial public offering size.
It is noteworthy that the offering shares are not new, but rather existing shares currently owned by the selling shareholder «Al-Ansari Holding», which sells 10% of its ownership in the group. Thus, the proceeds of the offering will go to the selling shareholder without the Group receiving any proceeds from the global offering. The selling shareholder will retain 90% of the group’s shares following the global offering.
After the completion of the global offering, the company intends to adopt a semi-annual dividend policy, so that these dividends will be paid twice during each fiscal year, in the months of April and October of each year.
The group aims to distribute profits of a minimum of 600 million dirhams for the proceeds of the year 2023, provided that the first half distributions will be presented in October 2023 and the second half distributions in April 2024, and after that, it is expected to distribute profits (paid twice annually) at a rate of no less than 70%. of the net profit generated.