Tamweel IPO public subscription to close on March 8.
The National Investor (TNI), lead manager and book runner for Tamweel IPO announced today that the public subscription for shares in Tamweel will be closing March 8, with allocation taking place in 21 days. The IPO for Tamweel, opened on February 27 2006, represents 55 per cent of the firm's capital and was the first IPO in the UAE this year.
According to a senior source at The National Investor the response has been extremely positive since the subscription opened. “The IPO has been very successful owing to Tamweel's excellent growth potential and the unique allocation policy that allowed both small and large investors to participate equitably in the IPO.“
With 550 million dirham ($149.7 million) worth of shares allocated in the initial public offering, Tamweel IPO featured a three-tranche allocation policy with 137.5m shares allocated equally among UAE National subscribers, with a maximum allotment of 20,000 shares per subscriber; 297.5m shares allocated for UAE nationals and UAE institutions, allocated on a pro-rata basis; and 115m shares for both expatriate investors residing in the UAE for at least six months as well as GCC nationals, also allocated on a pro-rata basis. The shares were sold at a nominal value of AED 1, with an additional 2 fils per share as subscription fees.
Following the closure of the subscription period, TNI will begin the allocation process and investors will be informed if their application has been successful and of the number of shares they were allocated. Funds will be returned to subscribers and company will then list on the Dubai Financial Market.
Tamweel’s IPO is being lead managed by The National Investor (TNI), the leading IPO manager and book runner in the UAE with a remarkable track record in leading the largest number of IPO’s in the country, both in terms of amount raised and over subscription rates.
Applicants can pick up subscription forms from one of the offering’s receiving banks – Union National Bank (lead receiving bank), Dubai Islamic Bank, Abu Dhabi Islamic Bank, Union National Bank, Abu Dhabi Commercial Bank, Emirates Islamic Bank and Mashreqbank.
© 2006 Al Bawaba (www.albawaba.com)