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UAE exchange Al Ansari to float 10% in Dubai IPO

DUBAI, March 9 (Reuters) – United Arab Emirates-based exchange Al Ansari Financial Services said on Thursday it plans to list a 10% stake in the company on the Dubai Financial Market (.DFMGI) Through an initial public offering (IPO).

The subscription period for the 750 million shares issued this time is from March 16 to March 24 and is expected to be listed on the exchange around April 6, the company said in a statement.

The Middle East bucked the trend and raised about $21.9 billion in IPOs last year, according to Dealogic. That’s more than half of the broader EMEA region total.

Last week, national oil giant ADNOC raised about $2.5 billion in the initial public offering of its gas business.

Al Ansari said Abu Dhabi Commercial Bank (ADCB.AD)EFG Hermes UAE and Emirates NBD Capital have been appointed as joint global coordinators for the IPO.

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The company, which began as a family business in 1966, is one of the largest exchange businesses in the region. As of the end of 2022, it operated 231 physical branches and employed 4,123 people.

It made a net profit of 595 million dirhams ($162.01 million) last year, up from 491 million dirhams in 2021. Operating income increased from AED 988 million in 2021 to AED 1.15 billion.

Al Ansari is targeting a minimum dividend of Dh600 million in 2023, to be paid in October and next April.

“Expects a future minimum dividend payout ratio of at least 70% of net profit generated (paid semi-annually),” the company said.

Al Ansari said it continues to evaluate value-add investment opportunities for growth, but if there are no suitable opportunities, it may pay a higher-than-minimum dividend.

Al Ansari added that the UAE’s sole federal sovereign wealth fund, the Emirates Investment Authority, has the right to subscribe for up to 5 percent of the offering.

($1 = 3.6727 United Arab Emirates dirhams)

Reporting by Rachna Uppal; Writing by Yousef Saba; Editing by Tom Hogue and Subhranshu Sahu

Our standards: Thomson Reuters Trust Principles.

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