Al Ansari raises IPO size to 7.5% for retail investors

Dubai News report: Al Ansari Financial Services on Friday said it increased the company’s initial public offering (IPO) size to 7.5 per cent for retail investors due to strong demand in the market.

The UAE’s leading foreign exchange and money transfer company said the retail portion of the IPO has been raised to more than 56.25 million shares from 37.5 million shares to accommodate more retail investors.

owever, it reduced the offer size for qualified investors from 712.5 million shares to 693.75 million shares, reflecting a decrease of 2.5 per cent in total shares to 92.5 per cent from 95 per cent.

Al Ansari Holding, which will own 90 per cent of the company, is selling 750 million, or 10 per cent, stakes in Al Ansari Exchange. It is offering shares at Dh1 to Dh1.03 and is expected to achieve a market capitalisation between Dh7.5 billion ($2.04 billion) and Dh7.73 billion ($2.10 billion) at the time of listing on the Dubai Financial Market.

“The final offer price will be determined through a book-building process and is expected to be announced on March 27,” according to the company.

.@AlAnsariEx increase the number of shares allocated to retail investors in its initial public offering to 56,250,000 ordinary shares from 37,500,000 ordinary shares as a result of very strong demand from retail investors, equivalent to 7.5% of the 750,000,000 ordinary shares pic.twitter.com/RqBwS6y9LS

— Dubai Media Office (@DXBMediaOffice) March 24, 2023

Al Ansari Financial Services is expected to raise as much as $210 million from the IPO. The retail offering closed on Thursday while the qualified investor portion ends on Friday.

Al Ansari is a leading company offering exchange services, remittances, systems for paying domestic workers and savings plans. It inaugurated first exchange branch in the UAE in 1966 and  has 231 branches across the UAE.

Al Ansari recorded 22 million personal remittance transactions in 2022 and considered the UAE one of the largest outward remittances markets globally  with a total value of $48 billion. It aims to boost its outward remittance market share from 15 per cent in 2022 to 20 per cent by 2027.