DUBAI, March 16 (Reuters) – United Arab Emirates-based exchange Al Ansari Financial Services said on Thursday it hopes to raise up to 772.5 million dirhams ($210.4 million) in an initial public offering (IPO).
Al Ansari said in a statement that last week it announced its intention to list a 10 percent stake in the company on the Dubai Financial Market, with shares set to trade between Dh1.00 and Dh1.03, implying a valuation of Dh7.5 billion to Dh7.73 billion. Ram.
The Middle East bucked the trend and raised about $22 billion in IPOs last year, according to Dealogic. That’s more than half of the broader EMEA region total.
The UAE National Bond Company, owned by Dubai’s sovereign wealth fund Investment Corporation, has committed Dh200 million as a cornerstone investor in Al Ansari’s IPO, the exchange said.
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Subscriptions for the IPO began on Thursday and will continue until March 23 for retail investors in the UAE and until March 24 for accredited investors. The final price of the shares will be determined on March 27, with a possible launch date of April 6.
The company is targeting a minimum dividend of Dh600 million for 2023, to be paid in October and next April.
Al Ansari said in a statement that the offer price range implies a minimum dividend yield of approximately 7.77% to 8.00% for FY2023.
Abu Dhabi Commercial Bank, EFG Hermes UAE and Emirates NBD Capital are the joint global coordinators for the IPO.
($1 = 3.6724 UAE Dirhams)
Reporting by Yousef Saba; Editing by Dhanya Ann Thoppil
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