NBAD chosen lead manager for Takaful IPO

National Bank of Abu Dhabi (NBAD) has been appointed as the financial advisor, lead manager and lead receiving bank for the Dh85 million Initial Public Offering (IPO) of Takaful Al Emarat – Insurance.

Takaful’s share capital of Dh150m consists of 150 million shares, 20 per cent of which will be owned by Al Buhaira National Insurance Company, 15 per cent by Austrian insurance and reinsurance group Uniqa International Group, and 10 per cent by other strategic stakeholders.

The offering will comprise 82.5 million shares, representing 55 per cent of the issuer’s share capital.

The IPO subscription was launched on Saturday and will continue until Monday. The offering is open to UAE, GCC and foreign investors. Each share is priced at Dh1 with subscription costs of Dh0.03 per share. Investors can subscribe to a minimum of 5,000 shares, with additional subscriptions in multiples of 1,000 shares.

As per the UAE Commercial Companies Law, the allotment of shares will be based on a pro-rata basis with at least 75 per cent allocated to UAE and GCC investors and 25 per cent to foreign investors. With the existing founders’ contributions, a maximum of 15 million shares will be allocated to foreign institutional and retail investors. Final allocation and refund of excess subscriptions will take place on April 21.

“Since founders are keen to ensure that Takaful Al Emarat – Insurance will stand out as a distinctive company operating in the UAE, GCC and all Islamic countries, the union of all parties concerned has been done through a rigorously conscious plan,” said Nader T Qaddumi, general manager of Al Buhaira National Insurance Company (Abnic).

“Uniqa International Group had been selected in view of its extensive experience in the insurance business, and ability to provide optimal products and insurance packages supported by advanced IT applications. The geographical footprint of Takaful Al Emarat – Insurance will cover the Middle East and North Africa region as well as Islamic countries. Core branches will be established in the UAE, particularly in Dubai, Abu Dhabi and Sharjah,” he said.

“The selection of lead manager is critical to the success of the IPO and post listing price performance. We selected NBAD based on the credentials of their Equity Capital Markets team, strong track record of involvement in UAE public offerings, large distribution network, and wide range of investment banking products.”