Abu Dhabi – UAE, 7th March 2011 – The response during the first week of Insurance House’s IPO, which began on 27th February and ends tomorrow 9th March, has been very encouraging. Mashreq, acting as the lead receiving bank for this IPO has received good response across its branches.
Abbas Hasan, Co-Head of Corporate Investment Banking Group, Mashreq said, “The first week of subscription for shares of the company has witnessed promising demand from UAE nationals and institutions. This reflects the market confidence in the success of the Insurance House IPO.”
Abbas Hasan continued, “March 23rd 2011 has been set as the date to allocate shares and refund the surplus funds collected. As per the regulatory requirements, the refunds to the subscribers will also include an interest component”.
The Insurance House IPO is looking to raise AED66 million which is 55% of the Company's authorized share capital of AED120 million. The subscription is open only for UAE nationals and 100% UAE national owned companies. The shares will be listed on Abu Dhabi Stock Exchange (ADX) and an announcement will be made later to confirm the listing date. Once listed, the company will immediately open up its shareholding to foreign ownership, to the extent of 20% of the Company's paid up share capital.
Mashreq’s branches, which are participating in the IPO, are strategically located across the UAE. This offers better accessibility to potential subscribers and more exposure for the issuing company. Other receiving institutions are National Bank of Abu Dhabi, National Bank of Fujairah, and Finance House. A prospectus providing full details of the IPO and the company, as well as a summary offering document and subscription application forms can be collected from the participating branches of the four receiving financial institutions. More details about the IPO are available on Insurance House website “http://www.insurancehouse.ae/”.