The Dubai Islamic Bank's Insurance and Re-Insurance company (Aman), has announced it will pay back to investors the excess money raised from last month's Initial Public Offering (IPO). The company has decided to issue 18 percent share allotments to all investors so that each receives an equal amount.
According to Head of the Founding Members Committee and Vice Chairman of Dubai Islamic Bank, Sultan Saeed Al-Mansoori, some 4,500 investors applied for the 33 million Emirati dirham ($8.9 million) IPO. Having raise the desired equity the company will return the extra share allotments to its investors, valued at Dh 150 million ($40.8 million).
Aman will commence commercial operations by the first quarter of 2003 and will be listed in the Dubai Financial Market (DFM) in the near future.
The IPO, which offered fifty five percent of the company's equity at Dh 10 per share was open to investors in lots of a minimum of 1,000 shares, up to a maximum of 100,000 shares. An additional charge of 30 fils per share was levied to cover the company's expenses for organising the subscription process.
With 55 per cent of AMAN's equity now resting with the public, the remaining 45 percent will be retained by the company's shareholders including Dubai Islamic Bank, the Investment Office, Dubai Technology, E-Commerce and Media Free Zone.
Aman has been licensed in Dubai by the Dubai Department of Economic Development to offer range of insurance and re-insurance products, in compliance with the principles of Islamic Shariah. The economic and business philosophy of Islam encourages generation and sharing of profits. However, it forbids giving or taking of interest. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
