Abu Dhabi's Wataniya to launch IPO on April 18

Mon Apr 11, 2011 1:53pm GMT
 

ABU DHABI, April 11 (Reuters) - A new Islamic insurance company, Wataniya, will launch an 82.5 million dirham ($22.4 million) initial public offering on April 18 with plans to list on the Abu Dhabi bourse, the company said on Monday.

The founders of Wataniya have subscribed to 45 percent of the total share capital of 150 million dirhams, the company said in a statement.

The offer price for each share is 1 dirham with the IPO closing on May 1.

Wataniya's founding shareholders are Abu Dhabi National Islamic Finance (ADNIF), Abu Dhabi National Insurance Company ADNIC.AD Abu Dhabi National Energy Company (TAQA.AD: Quote) and Aldar Properties ALDAR.AD.

ADNIF is a subsidiary of National Bank of Abu Dhabi (NBAD.AD: Quote) which is acting as adviser, lead manager and receiving bank for the IPO.

"We are confident that this IPO will be successful and re-ignite capital market participation in the UAE," Aref al Khouri, chairman of the founders' committee, said in the statement.

Takaful gross contributions in the UAE are projected to grow at a CAGR of 30 percent between 2010 and 2014 outpacing the growth in the overall insurance sector (CAGR of 17 percent) during the same period, the statement said.

The UAE has not had an IPO in over two and a half years. The first IPO was launched by Abu Dhabi based Insurance House in February this year. (Reporting by Stanley Carvalho; Editing by Nick Macfie)

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