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Abu Dhabi’s Insurance House to launch IPO
Firm to IPO 55 percent of its outstanding shares; UAE mkts deprived of new issues in last two years
February 15, 2011 4:08 by Reuters
Abu Dhabi’s Insurance House will launch its $16 million initial public offering (IPO) on February 27, the first listing in the United Arab Emirates in over two years.
The subscription period for the issue will open on Sunday, Feb. 27 and will close on Wednesday 9 March, a statement from Abu Dhabi-listed Finance House, the promoter of Insurance House said on Tuesday.
The UAE has not seen an IPO in about two years as the global economic downturn and Dubai’s debt crisis dented investors’ appetite.
Finance House has subscribed to 36 percent of the founder’s share capital of 54 million dirhams ($14.70 million) or 45 percent of the capital.
“We are investing our money and reputation in this new company, and are confident of the success of the IPO and subsequently the company itself,” said Mohammed al Qubaisi, chairman of Finance House.
“We have a proven track record among the investors community in the UAE, and they know that we don’t bet on losing horses.”
The IPO is being advised by FH Capital, the wholly owned investment banking subsidiary of Finance House.
Mashreq Bank will act as the lead receiving bank, with National Bank of Abu Dhabi, National Bank of Fujairah and Finance House as receiving banks.
Insurance House is set to commence operations within a record time from the date of completion of the IPO, the statement said without being more specific.
(Reporting by Stanley Carvalho, Editing by Dinesh Nair)