NBAD leads Takaful Al Emarat IPO

Takaful's share capital of Dhs150m ($40.85m) consists of 150 million shares, 20% of which will be owned by Al Buhaira National Insurance Company, 15% by UNIQA International Group (an Austrian Insurance and Reinsurance group), and 10% by other strategic stakeholders with considerable insurance sector experience. The offering will comprise 82.5 million shares, representing 55% of the issuer's share capital.

IPO subscription was launched on March 29, 2008 and will continue until April 7, 2008.

The offering is open to UAE, GCC and foreign investors. Each share is priced at Dhs1.00 with subscription costs of Dhs0.03 per share. Investors can subscribe to a minimum of 5,000 shares with additional subscriptions in multiples of 1,000 shares.

As per the UAE Commercial Companies Law, the allotment of shares will be based on a pro rata basis with at least 75% percent allocated to UAE and GCC investors and 25% to foreign investors. With the existing founders' contributions, a maximum of 15 million shares will be allocated to foreign institutional and retail investors. Final allocation and refund of excess subscriptions will take place on April 21.

"Since founders are keen to ensure that Takaful Al Emarat - insurance will stand out as a distinctive company operating in the UAE, GCC and all Islamic countries, the union of all parties concerned has been done through a rigorously conscious plan," said Mr. Nader T. Qaddumi, General Manager of Al Buhaira National Insurance Company (ABNIC).

"UNIQA International Group had been selected in view of its extensive experience in the insurance business, and ability to provide optimal products and insurance packages supported by advanced IT applications. The Geographical footprint of Takaful Al Emarat - insurance will cover the Middle East & North Africa region as well as Islamic countries. Core branches will be established in the UAE, particularly in Dubai, Abu Dhabi and Sharjah," he added.

"The selection of lead manager is critical to the success of the IPO and post listing price performance. We selected NBAD based on the credentials of their Equity Capital Markets team, strong track record of involvement in UAE public offerings, large distribution network, and wide range of investment banking products," Mr. Qaddumi explained.

"There is strong potential for Islamic Insurance companies in the UAE as demand for Shari'ah-compliant products grows globally. Backed by a strong distribution network and a thorough understanding of the local equity and debt capital markets, the National Bank of Abu Dhabi continues to support many government and private institutions achieve their financing objectives," said Mr. Stuart Henrickson, General Manager - Investment Banking Group at NBAD.

"GCC insurance sector witnessed strong growth during 2007 with the Takaful sector demonstrating significant demand," said Mr. Ahmed Wahdan, Head of Equity Capital Markets at NBAD Investment Banking Group."

"Aiming to specialize in Takaful services, Takaful Al Emarat - insurance is set to provide new and innovative services covering Shariah Compliant life and medical schemes in addition to Takaful investment planning services," Mr. Wahdan concluded.