Insurance House to launch IPO on Feb 27
Abu Dhabi, February 15, 2011
Insurance House, an under establishment Abu Dhabi-based company, will launch its initial public offering (IPO) of 55 per cent (Dh66 million or $17.97 million) of its authorised share capital of Dh120 million, on February 27.
The founders share of capital of Dh54 million (or 45 per cent of capital) has been subscribed with Finance House taking 36 per cent of the company.
Approved by the Abu Dhabi Executive Council, the Insurance Authority, the Emirates Securities & Commodities Authority and the Department of Economic Development, the IPO is the first in the UAE in over two years and a half, and is viewed by many as a test for UAE capital markets revival.
The IPO advisor is FH Capital, the wholly owned DIFC based investment banking subsidiary of Finance House.
Insurance House has appointed Mashreq Bank as the lead receiving bank, with the participation of the National Bank of Abu Dhabi (NBAD), National Bank of Fujairah (NBF) and Finance House (FH) as receiving banks.
The subscription period will open on February 27 and close on March 9.
A full prospectus providing full details of the IPO and the company, as well as a summary document and subscription application forms shall be available from the four receiving financial institutions from February 23 onwards, and further details about the IPO are available on Insurance House website www.insurancehouse.ae.
“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. We have a proven track record among the investors community in the UAE, and they know that we don’t bet on losing horses,” stated Mohammed Abdulla Alqubaisi, chairman of Insurance House Founders Committee and chairman of Finance House.
“We have worked out an overall strategy and a detailed implementation plan to ensure success of the IPO and the company. The key components of this strategy revolve around establishing a professional organisation with a high calibre management team which has an established record in the industry and experience in insurance within UAE.
Mohammed Othman has already been appointed as general manager of Insurance House. Othman brings over 30 years of insurance industry experience of which 10 are within the UAE, whereby he has served in senior management positions in leading local insurance companies.
“Insurance House will be all set to commence operation within a record time from the date of completion of the IPO, which shall minimise overheads and expenses and ensure revenue start as early as possible,” concluded Othman.-TradeArabia News Service