Al Ansari Financial Services, a leading financial services company in the United Arab Emirates (UAE), made a strong debut on the Dubai Financial Market (DFM) on Monday, with its stock rising by 17.5% from its initial public offering (IPO) price of Dh1.03.
The company, which offers a range of financial products and services including brokerage, asset management, and investment banking, raised Dh500 million ($136 million) from its IPO, which was oversubscribed by more than 5 times.
The strong demand for Al Ansari Financial Services’ shares reflects the confidence of investors in the company’s growth prospects, as well as the broader outlook for the UAE’s financial services sector. The financial services sector in the UAE has been experiencing significant growth, with a rise of 3.6 percent in 2017 and an estimated 4.4 percent growth for 2018.
The UAE’s financial services sector has been a key driver of the country’s economic growth in recent years, accounting for more than 12% of the country’s GDP and employing more than 30,000 people. The sector has benefited from the UAE’s strategic location at the crossroads of global trade, as well as its business-friendly regulatory environment and modern infrastructure.
Commenting on the successful IPO, Mohammad Al Ansari, the Chairman of Al Ansari Financial Services, said: “We are delighted with the strong response to our IPO, which reflects the confidence of investors in our business and our growth prospects. We are committed to delivering value for our shareholders and contributing to the continued development of the UAE’s financial services sector.”
He added: “We believe that our successful IPO marks a new chapter in our company’s growth story, and we look forward to leveraging our strong market position and expertise to capitalize on the opportunities in the UAE and beyond.” Our strong commitment to providing world-class services, combined with our commitment to investing in our people and technology, will continue to set us apart from the competition. We are confident that with the support of our shareholders and partners we can continue on this journey towards long-term growth and success.
The successful IPO of Al Ansari Financial Services is expected to encourage other companies in the UAE’s financial services sector to consider going public in the coming months. With a number of high-profile IPOs expected in the region this year, including Saudi Aramco’s planned listing on the Tadawul exchange in Riyadh, the UAE’s capital markets are set to remain a key focus for investors in the region.
The strong performance of Al Ansari Financial Services’ stock on its first day of trading is a clear indication of the positive sentiment surrounding the UAE’s financial services sector. With a young and growing population, a strategic location at the crossroads of global trade, and a business-friendly regulatory environment, the UAE is well-positioned to continue to attract investment and grow its financial services sector in the years to come.
As the UAE continues to diversify its economy away from oil and invest in new industries, such as renewable energy, technology, and tourism, the role of the financial services sector is expected to become increasingly important. With companies such as Al Ansari Financial Services leading the way, the future looks bright for the UAE’s financial services sector and the broader economy.
Al Ansari has been at the forefront of innovative financial solutions in the region, helping to underpin the growth of some of the UAE’s most important industries. From offering tailored investment solutions and access to local and international markets, to providing industry-leading expertise in areas such as Islamic banking and Shariah compliance, Al Ansari is helping shape a sustainable future for the UAE and beyond.
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