Abu Dhabi, 12 March, 2011- The Founders Committee of Insurance House announced the successful completion of the company’s IPO. An overall share capital of 120 million dirham has been collected in full. Mohammed Abdulla Alqubaisi, Chairman of Insurance House Founders Committee said: "The IPO of Insurance House has broken the deadlock in the struggling UAE IPO market since more than two and a half years, and achieved outstanding success under very difficult circumstances caused by the political situation and the region's economic recession, in addition to the sharp downturn in the stock market during the subscription period".
Alqubaisi added: "The coverage of this IPO reflects the confidence of a significant segment of investors in our project, and we are committed to be extremely careful about their interests and the success of this new company".
"We have been working for several months to build the infrastructure of the company, and attracted a distinguished management team to manage the company, also by the end of April, we will finish all the works required for the establishment of the company.
In addition to human resources, company's offices have been rented and are being prepared, whereas the company's branch network will be spread over Abu Dhabi, Dubai and Sharjah. We have finalized the selection of an IT company, and implementation of a selected information system is underway with collaboration of a team from Insurance House for the application of that system”, continued Alqubaisi. “All systems, policies and internal procedures are being finalized to enable the initiation of the company’s operations on a professional basis from the moment of inception, additionally, all files processing for the Company's licensing requirements related to official authorities are under process.
Insurance House’s management is currently focused on the strategies and marketing plans in preparation to attract the largest volume of business from the first day of operations. All this is being handled through close cooperation between the Management Team of Insurance House and Finance House which holds up to 36% of the new company”, concluded Alqubaisi.
This IPO has uncovered new leaders in the stock markets, where national institutions have proven their ability to lead such projects without any participation of foreign institutions. This has been well demonstrated by FH Capital, the investment banking subsidiary of Finance House, through its merits and ability to successfully lead the IPO in the most difficult circumstances. In addition the IPO manager, Mashreq Bank, demonstrated outstanding leading role in the IPOs market, reemphasizing its ability to attract investors. The founders committee has commended the people in charge of the UAE Insurance Authority and the Securities and Commodities Authority and Department of Economic Development in the Emirate of Abu Dhabi for their support which has contributed immensely to the success of this IPO.
Despite the large turnout of the various segments of individual investors and companies and institutions of the private sector, a total absence of the investment arms of the public sector was noted, where none of the pension funds or sovereign investment funds or any institution or any wholly or partially owned governmental investment arm have participated in this IPO.
It is known that the IPO was limited to UAE Nationals, however the company intends to open up its shareholding to foreign ownership as soon as the shares are listed in the Market; the company is currently completing the allocation procedures that will be finalized on March 23, 2011.
Insurance House also plans to hold its EGM within ten days from that date, as a prelude to finalizing the establishment of the company and listing on the Abu Dhabi Securities Exchange.