A UAE-based money exchange and transfer company; Al Ansar Financial Services made its first trading on the Dubai Financial Market on Thursday. The debut shares of the company have crossed more than 17 percent thus marking the first IPO of this year for Dubai.
The Al Ansari Company, with its family-based remittances and money exchanges, has sold about 750 million shares in its debut offering which raised about $210 million, 10 percent of the company’s stake.
The Market Trusts The Company’s Growth As Shares Rise
The CEO of the Al Ansari Financial Service, Rashed Ali Al Ansari said that the company has listed the shares publicly. The sale of the shares which hit a record of $210 million has raised the value of the company to $2.1 billion.
With this listing, the Dubai Financial Market marks its first family businesses and the first initial public offering of the year 2023. The listing of the five leading government-related and other private companies and the IPO is expected to offer the Dubai Financial Market a significant year ahead.
To share the pleasure of the listing, the market opening bell of the Dubai Financial Market was rung by the Chairman of AL Ansari Financial Services, Mr. Mohammad Ali Al Ansari. The other officials like the Chairman of the Dubai Financial Market, His Excellency Helal Al Marri, Rashed Ali Al Ansari, CEO of the Al Ansari Financial Services Group, CEO of the Dubai Financial Market, and Nasdaq Dubai witnessed the moment.
The successful initial public offering that raised AED 773 million from the sales of about 750 million shares for AED 1.03 gave the company a market value of AED 7.7 billion in the listing. With this initial opening, the shares of the Al Ansari Financial Services Group started trading under the symbol “ALANSARI”.
Thus, adhering to the demand of the offering and the business model of the Group, the IPO with its 22 times increased offering was successful in attracting a sturdy demand from the investors. The section of the Retail Investors alone witnessed an oversubscription of 44 times thereby raising its offer size from 5 percent to 7.5 percent.
This increase was almost equal to the total offering’s 56.25 million ordinary shares. Both the qualified and the retail investors showed a high demand for the IPO thus surpassing the total demand to a value of AED 12.7 billion.
Al Ansari Financial Services was established in the year 1966 and from then onwards the company has sailed a long way to become UAE’s leading financial services company. Besides, with more than 231 physical branches across the UAE, the company has been recognized as a leading performer in the external private remittance and retail foreign exchange market of the UAE.
Mohammad Ali Al Ansari, the Chairman of the Al Ansari Financial Services Group, commented on the successful listing of the Group. He said that, the listing of their shares in the Dubai Financial Market, has marked a significant turning point in the company’s history and that it will help the company to embark on a novel and exhilarating chapter in its 57-year-old history.
He further added that this successful transaction of the company would serve as an inspiration for other family-owned companies to follow thus helping the UAE to deepen and diversify its capital markets.
He further added that they find great pride in the journey of the company, from its establishment in 1966 as a family-owned exchange to its growth as an ecosystem of international financial services. From its humble beginning, the company has now transformed into a market leader in its offerings and finally became a listed company in the Dubai Financial Market. He added that this achievement was made possible only with trust and support from the regional, local, and global investors who are a vital part of the future success of the company.
With the presence of the company’s Director Board Members, he shared the company’s immense pleasure to welcome the new shareholders to the Group. He added that they look forward to collaborating with the new shareholders to make progress toward achieving the growth aspirations of the company.
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The Chairman of the Dubai Financial Market, His Excellency Helal Al Marri, congratulated the Al Ansari Financial Services Group on reaching an important milestone. The diversifying plan and the commitment of Dubai to develop its capital markets are expected to receive support from the successful listing of the Group.
He concluded his words by saying that the Group’s successful listing will serve as an example to follow for the other family businesses thereby increasing the confidence of the investors and the economic growth of the UAE.
The CEO of the Al Ansar Group, Rashed Ali Al Ansari also expressed his gratitude to the DFM for providing a great platform for the company. The company will concentrate to maintain its position as a leading industry leader with a special focus to increase the market share in the GCC, improve the digital offering, increase the current margins, expand the market reach of their remittances, and improving the company’s value proposition in the cash management market said the CEO.
He concluded that the listing that the company has made was achieved as a result of many significant taken by them and the company will strive to create more value for the customers and shareholders. Thus hoping to expand the growth of the company in the coming future.