National Takaful Company “Watania” to launch IPO tomorrow
Press release
Aref Ismail Al Khouri, Chairman of Watania’s Founders’ Committee and Managing Director of ADNIF
The National Takaful Company “Watania”, an Abu Dhabi based Sharia'a-compliant (Islamic) insurance company under establishment, will launch an Initial Public Offering (IPO) tomorrow to raise AED 82.5 million, representing 55% of the total share capital amid expectations of high participation due to strong growth potential of the Islamic insurance sector.
The National Bank of Abu Dhabi (NBAD) has been mandated as financial advisor, lead manager, and the receiving bank for the Watania IPO. Subscription will be accepted at all NBAD branches across the UAE starting from tomorrow until May 1st 2011.
Watania's Founders have subscribed to an aggregate value of AED 67.5 million shares representing 45% of the total share capital of AED 150 million. The four founders, Abu Dhabi National Islamic Finance (ADNIF), Abu Dhabi National Insurance Company (ADNIC), Abu Dhabi National Energy Company (TAQA), and Aldar Properties (ALDAR), are among UAE’s strongest institutions.
The offer price for each share is fixed at AED 1 with an additional AED 0.05 as subscription fee per offered share. The shares will be listed on the Abu Dhabi Securities Exchange (ADX)
The offering is over two tranches. The first tranche, comprised of twenty million shares, or 13.33% of the total capital, is open to UAE nationals individuals only, who can subscribe to 5,000 shares. The second tranche, which comprises 41.67% of the total capital, is allocated on a pro rata basis for all individual and institutional investors who can apply for a minimum of 10,000 shares, with additional subscriptions in multiples of 1,000 shares. The refund date has been set for May 15, 2011.
“Commitment of Watania’s founding shareholders underscores the company’s capital strength and the promise of the offering,” said Aref Ismail Al Khouri, Chairman of Watania’s Founders’ Committee and Managing Director of ADNIF. “Watania will play a vital role in developing the growing Shariah-compliant insurance industry in UAE and to provide critical insurance support for all organizations participating in the realization of Abu Dhabi Vision 2030. The tremendous growth opportunities in this sector make Watania an attractive investment.”
NBAD has a network of 113 branches, cash offices, and more than 450 ATMs to provide comprehensive banking services to customers all over the UAE, which makes it convenient for investors to subscribe in this IPO.
Recent statistics reveal that Takaful gross contributions grew at Compound Annual Growth Rate (CAGR) of 83% between 2004 -2009 whereas conventional premiums grew at a CAGR of 25% during the same period. Takaful gross contributions in the UAE are projected to grow at a CAGR of 30% between 2010 and 2014, outpacing growth in the overall insurance sector (CAGR of17%) during the same period.
“We believe that Watania Takaful will be able to implement its ambitious business plan and succeed with the support of the organization’s founders and a seasoned management team, which has proven track record in the market and given the growth opportunities in the Takaful industry in the UAE and throughout the region, ” said Ahmed Wahdan, the Head of equity capital markets at NBAD’s Investment Banking Group.
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Background Information
National Takaful Company
NTIC is a National join stock company established in 2003.
NTIC's Paid up capital is KD10,000,000 Millions.
NTIC was established by the leading business groups in both Arab & Kuwaiti market.
The company's general policy is drawn and managed by Kuwaiti board of directors in addition to the elite department managers and employees with wide experience and unique professionalism.
Abu Dhabi National Insurance Company - ADNIC
Abu Dhabi National Insurance Company (ADNIC) PJSC is a composite insurance partner with long-standing expertise in providing insurance products to individuals and corporates across the Middle East and North Africa (MENA) region. Founded in the United Arab Emirates (UAE) in 1972, ADNIC has a wide network of branches as well as sales and service centers across the country. ADNIC also has a representative office in London, under the name ADNIC International Ltd. ADNIC is a publicly listed company on Abu Dhabi Securities Exchange (ADX).
Abu Dhabi National Energy Company
Abu Dhabi National Energy Company (TAQA) is a global energy company majority owned by the Abu Dhabi Government and listed on the Abu Dhabi Securities Exchange.
Its activities include oil and gas, power generation and water desalination across five continents. With operations in the UK, the Netherlands and North America, our oil and gas business includes exploration and production, storage and pipelines. It produces almost 137,000 barrels of oil equivalent per day in the North Sea and North America, as well as operating and developing extensive gas storage facilities in the Netherlands.
TAQA is the 6th largest independent power producer in the world. Its power plants are located in the United Arab Emirates, Morocco, Saudi Arabia, Ghana, India, and the United States. TAQA is the majority owner in the facilities that provide 98% of the water and electricity requirements in the Emirate of Abu Dhabi.
Established in 2005, TAQA’s entrepreneurial culture has laid the foundations for long-term sustainable growth building on its commitment to people, safety and the environment.
Aldar Properties
Aldar Properties PJSC, is the leading real estate developer in Abu Dhabi, and through its iconic developments, it is one of the most well known in the United Arab Emirates, and wider Middle East region.
From its beginnings in 2005 through to today, Aldar continues to shape and enhance the urban fabric of the UAE’s Capital City in addition to other key areas of the Emirate of Abu Dhabi.
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