Orient UNB Takaful IPO more than 13 times oversubscribed
Union National Bank was the sole manager for the Orient UNB Takaful IPO, the first Initial Public Offer to hit the UAE market since 2015.
Lead Manager & Lead Receiving Bank for Orient UNB Takaful PJSC IPO (Under Incorporation), Union National Bank announced that the Initial Public Offer (IPO) was oversubscribed more than 13 times.
The Orient UNB Takaful IPO size was 600,000 Ordinary Shares representing 30 per cent of the equity of the new Company (AED 60 Million) with a share price of AED 100 plus AED 1 as issuing expenses.
Union National Bank is currently working with Dubai Financial Market (DFM) to list the new Company. The IPO subscription period was open from 29th November 2016 till 15th December 2016.
Union National Bank informed Securities and Commodities Authority (SCA) that the total collection is AED 826 Million from IPO Subscribers, after closing the IPO. Therefore Union National Bank refunded the excess money to subscribers on 20th December 2016.
Mr. Mr. Mohammad Nasr Abdeen, UNB CEO, said, “We are happy with our partnership with Orient Insurance Company, in establishing the new Takaful company which will offer a range of innovative products and services to the increasing number of customers looking for Islamic financial solutions. Despite the high number of insurance companies operating in the UAE, we see an opportunity, as there are only a limited number of companies operating in the field of Takaful. In addition, there is a growing demand for Shari’ah compliant financial products and services and insurance products.”
He added, that with their strong and diverse capital base, they are now focused on continued expansion and delivering superior returns that shareholders and capital market investors have come to expect.