ADX hosts briefing session on United Insurance Company (UIC) rights issue
Abu Dhabi Securities Exchange (ADX) hosted an event discussing the capital restructuring of United Insurance Company (UIC) in an effort to maintain the positive links between The Exchange and its listed companies, brokers, and investors.
The event was held in presence of ADX Chief Executive, Rashed Al Blooshi, UIC Board Member, Nawwaf Ghobash, and senior management from both sides, as well as a number of registered brokers in ADX. The presentation aimed at demonstrating all details related to capital restructuring, special offering for shareholders, and UIC future plans.
The capital restructuring of UIC includes offering 75 million shares of rights issue at price of AED for every three new shares against four outstanding shares. The strategic partner Fidelity Assurance and Reinsurance will cover 25 millions of remaining shares.
“ADX has offered all the possible facilities to ensure a successful underwriting transaction of UIC rights issue UIC is one of three companies to offer rights issue transaction in ADX. ADX has the experience and the efficiency to manage successfully concluded transaction. ADX always seeks to offer innovative, efficient, and transparent services for investors, listed companies and stakeholders in line with the best global practices used in capital markets,”said Rashed Al Blooshi, Chief Executive, ADX.
UIC Board Member, Nawwaf Ghobash presented a full demonstration on capital restructuring of UIC that is aimed at minimising the last year losses of 100 million Dirhams. It is also aimed at decreasing the capital and removing shares owned by each shareholder, indicating that the Company will increase its capital to 100 million Dirhams again, through the new liquidity generated from the subscription of the current shareholders of the Company and the strategic partner.
“I am pleased by the support offered by ADX, SCA and UIC’s strategic partner and shareholders. The insurance sector has many opportunities which will be generated after the revision of prices of insurance policies and diversifying the services offered by the sector, in addition to the positive indications of the audited financial results of the Company for the year 2016,” said Nawwaf Ghobash.
The subscription opportunity in UIC is unique because it has assets and operations. In addition to the importance of the role the strategic partner which has huge experience regionally will play, added Majd Ma’aytah, representative of National Bank of Abu Dhabi (NBAD), the lead receiving Bank for the Rights Issue.
The start date for subscription to the capital increase shares on ADX began on 26 April and will end on 18 May, while the Rights Issue began on 19 April, and will end on 11 May for shareholders of the company.