Air Arabia IPO attracts close to 40,000 subscribers

The AED2.5 billion IPO, the largest in UAE history to date, attracted approximately 40,000 subscribers, including leading international banks, to four tranches that were fully covered.

Allocation of shares among subscribers will take place on April 8, 2007, with refunds for subscribers in the UAE on April 11, 2007, and for those in the GCC on April 14, 2007. Air Arabia shares will be listed on the Dubai Financial Market.

Adel Ali, Chief Executive Officer, Air Arabia, said: "On behalf of Air Arabia I sincerely thank all our investors, stakeholders and partners for the success of this landmark initial public offering. We have broken new ground with this successful IPO, and are grateful to the UAE Ministry of Economy and the Emirates Securities & Commodities Authority for their continued support."

He added: "We are also grateful to the thousands of local, regional and international investors who have expressed their confidence in the company's bright future. All of us at Air Arabia are extremely pleased with the results of the largest initial public offering in the history of the UAE and the first ever in the region by an airline."

He concluded: "While I am very happy to announce that our IPO has come to a successful conclusion, I am even more excited to begin this new chapter in Air Arabia's corporate history - as the first publicly listed airline in the region. In partnership with our shareholders, we look with great optimism to endless possibilities and new horizons."

Rody Yared, Head of Capital Markets Syndicate at SHUAA Capital, the Lead Manager, Financial Advisor and Bookrunner for the IPO, said:

"According to the figures we have received, we can state that Air Arabia's IPO has been a success, and that IPOs in the region continue to be viable investment avenues for institutions, funds and individuals. It is also becoming clear that subscription levels are maturing and are becoming more in line with International levels, with a decreasing number of investors relying on leverage."

The total size of the public offering was AED2,566,700,000 consisting of 2,566,700,000 shares, representing 55 per cent of the company's share capital, at an offer price of AED 1 per share, in addition to AED 0.02 in offering costs.

The company intends to use the proceeds from the offering, in addition to bank financing, to expand the size of its existing fleet from nine to at least 34 aircraft by 2016. In addition, Air Arabia aims to expand its scope of operations and invest in the infrastructure associated with the fleet expansion.