Amlak Finance has reported that the share allotment process for its 412.5 million Emirati dirham ($112 million) Initial Public Offering (IPO) has been completed on a pro rata basis.
Each subscriber will receive 3.03 shares for every 100 shares that they had subscribed to. As the minimum subscription size was 25,000 per subscriber, the allotment for subscribers will be in multiples of 757 shares per 25,000 shares subscribed to and represents the fair and practical ratio for allotment.
The Amlak Finance Founders Committee approved the share allotment ratio for its IPO that received an overwhelming response from investors, being oversubscribed a record 33 times and collecting Dh 13 billion within 10 days of opening in January 2004. A total number of 17,241 investors subscribed to the IPO with 64 percent of the subscribers being UAE nationals, 31 per cent being Gulf Cooperation Council (GCC) nationals and five per cent being expatriates resident in the UAE.
Amlak Finance will send a notification to subscribers informing them about their individual share allotment. Receiving banks will return the excess monies to subscribers through cheques that will be sent directly to the addresses provided by the investors. It is anticipated that the notification and refund process will be completed even before the legal time frame of one month from the date of the closing of the IPO.
Established in 2000, Amlak Finance is the first financial services company in the region to specialize in the provision of mortgages. The company is majority owned by Emaar Properties, which was founded as a public company in 1997. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
