Tamweel IPO raises AED275 billion

TNI's estimates show that the IPO has been oversubscribed by almost 500 times with more than 140,000 subscribers submitting applications for shares.

Commenting on the results of the offering, a senior spokesperson at TNI pointed to the unique allocation policy that allowed both small and large investors to participate equitably in the IPO: "The response from investors has been overwhelming and we would like to thank them for showing strong interest and faith in Tamweel. We have plans to list Tamweel on the Dubai Financial Market in an expedient fashion, as soon as we have incorporated the Company".

The Tamweel IPO sought to raise AED550 million - representing 55% of Tamweel's capital - through shares offered to UAE nationals, UAE companies, GCC nationals, and expatriates residing in the UAE for at least 6 months. Shares were on offer at a nominal value of AED 1, with an additional 2 fils as subscription fees per share.

Explaining the allocation of shares, a senior official at TNI explained:

"A unique allocation policy was created to offer the shares in three tranches. The first tranche - a maximum 137,500,000 shares - will be allocated equally among UAE National subscribers with a maximum allotment of 20,000 shares per subscriber. The second tranche which is capped at 297,521,000 shares will be distributed to UAE Nationals and UAE based institutions. The third tranche will allocate 114,979,000 shares for both expatriate investors residing in the UAE for at least six months, GCC nationals as well as Non-UAE institutions."

Allocation of shares for the second and third tranche will be made on a pro rata basis. Refunds for the issue will also be made on March the 29th. Following this it is anticipated that Tamweel will call for a shareholders meeting to take place within 30 days from the refund date.

With profits of AED62 million up to 2005, Tamweel expects to continue to benefit from boom in the real estate sector and is planning a regional expansion strategy.