Hermes successfully launches Al Ansari Financial Services, Dubai's first family business

EFG Hermes announced that the Promotion and Underwriting division of the leading frontier and emerging markets investment bank has successfully completed advisory services for the initial public offering of Al Ansari Financial Services, one of the UAE's leading integrated financial services companies, focusing on money transfer and foreign exchange services, worth US$210.5 million (AED 773 million) on the Dubai Financial Market (DFM).

EFG Hermes acted as the global co-coordinator of the transaction, marking the fourth transaction in which EFG Hermes participated as a global coordinator in less than six months, successfully completing the $204 million initial public offering of Taaleem, a leading education services provider on the Dubai Financial Market (DFM), the $60.6 million offering of The Pearl Real Estate Investment Fund on the Muscat Securities Exchange. announced the public offering of Abraaj Energy Services Company worth US$ 244 million on the Muscat Securities Exchange (MSX) in March.
The IPO saw Al Ansari offer 10% of its total share capital, equivalent to 750 million shares and a nominal value of AED 1.03 per share, the maximum indicative price approved by the company. The market capitalization of the transaction was AED 7.73 billion (USD 2.10 billion), with the IPO being covered 22 times by institutions.
The IPO attracted qualified investors on the regional and international arenas, with a volume of AED 10.2 billion, as well as individual investors from the UAE market, who reached AED 2.5 billion.
Al Ansari is one of the UAE's leading integrated financial services providers, with a track record of more than 50 years in providing money transfer and foreign exchange services. The family business has successfully designed a specialized financial system to provide intercountry payment services, foreign exchange solutions, as well as access to the Wages Protection System in the UAE, in addition to a number of other services such as bill collection, prepaid cards, as well as providing a range of fast-growing services such as payment technology solutions for individuals and companies in the remittance market, foreign exchange, and expatriate remittances.
Trading today commenced on the company's shares under the symbol (ALANSARI).
Mohamed Fahmy, Co-Head of Promotion and Underwriting at EFG Hermes, said: "We are proud to provide advisory services for this transaction in the UAE market, as it is the first IPO deal for an Emirati family business in its modern sense. Fahmy stressed that this achievement comes within the framework of the UAE government's efforts to support and enhance the growth process of major institutions operating in the market, advance economic development, and attract more investors, especially in light of the challenges in the global arena. Fahmy added that the GCC countries have succeeded in overcoming these challenges and achieving strong economic growth contrary to global trends, which was reflected in the remarkable growth in the number of investors, thanks to their tremendous unique assets as well as the achievements and serious steps they have taken to strengthen capital markets. EFG Hermes has successfully leveraged these assets to complete a number of key initial public offerings (IPOs) in the region, most recently the initial public offering of ADNOC Gas on the Abu Dhabi Securities Exchange (ADX) and the public offering of Abraaj Energy Services on the Muscat Securities Exchange (MSX). Fahmy stressed that EFG Hermes plans to expand its presence in the GCC and provide high-quality services in the GCC markets, to enable its clients to generate significant returns and enhance their ability to obtain the capital needed to finance ambitious growth plans, on the back of acting as the joint global coordinator in its fourth deal in just six months.
This is EFG Hermes' third IPO this year, and builds on the 12 high-profile deals it has successfully completed in 2022. A transaction totalling US$12.8 billion. The Group recently successfully advised on the US$2.5 billion public offering of ADNOC Gas on the Abu Dhabi Securities Exchange (ADX) and the public offering of Abraaj Oman Energy Services on the Muscat Securities Exchange (MSX) worth US$244 million. The Group also provided its advisory services for the dual listing of Americana Restaurants, the first of its kind between the Abu Dhabi Securities Exchange (ADX) and the Saudi Stock Exchange (Tadawul) in a deal valued at US$1.8 billion, as well as the initial public offering of Taaleem Group worth US$204 million, and the public offering of Salik shares on the Dubai Financial Market (DFM) worth US$1 billion. In Abu Dhabi, the Group provided advisory services for the US$2 billion initial public offering of Borouge Chemicals on the Abu Dhabi Securities Exchange (ADX). In Saudi Arabia, EFG Hermes advised on the $400 million initial public offering of Riyadh Cable Group on the Saudi Stock Exchange (Tadawul). In Kuwait, the group provided advisory services for the $323 million private placement of Ali Alghanim & Sons Automotive Company prior to the IPO on Boursa Kuwait.