First IPO in the UAE in over 2 years
Abu Dhabi, 15 February, 2011– Insurance House, an under establishment Abu Dhabi-based insurance company, today announced that the Initial Public Offering (IPO) of 55 per cent (or AED 66 million) of the Company's authorized share capital of AED 120 million will be launched on 27 February, 2011. The Founders share of capital of AED 54 million (or 45% of capital) has been subscribed with Finance House taking 36% 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 Sunday 27 February, 2011 and will close on Wednesday 9 March, 2011. 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 23 February, 2011 onwards, and further details about the IPO are available on Insurance House website “www.insurancehouse.ae”.
Mohammed Abdulla Alqubaisi, Chairman of Insurance House Founders Committee and Chairman of Finance House said: “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”.
Alqubaisi added: “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 organization with a high caliber management team whom has an established record in the industry and experience in insurance within UAE.
“We intend to minimize costs through utilization of support services infrastructure available at Finance House. In addition to that, Insurance House will have access to Finance House’s marketing and distribution networks, which shall provide the new company with access to a significant volume of business during its initial days and shall provide the new company with one of the largest (if not the largest) marketing infrastructure among the UAE’s insurance companies”, concluded Alqubaisi.
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.
Othman said: “Along with a team from Finance House, we have been working for several months on finalizing all aspects of the company. We are in the process of recruiting the management and personnel required. We have finalized selection of IT system and implementation is underway. Offices for the company has been identified, rented and shall be ready by the end of March”.
“Along with the team from Finance House we are putting final touches on the internal operating procedures and product policies and manuals. We are also working to finalize the arrangements with re-insurers. Insurance House will be all set to commence operation within a record time from the date of completion of the IPO, which shall minimize overheads and expenses and ensure revenue start as early as possible”, concluded Othman.