Two days after announcing details of its initial public offering (IPO), Aman, the newly established Dubai Islamic Insurance and Re-Insurance Company, has announced that prospective investors have already applied for the entire offering.
“The response to the IPO which opened for subscription on October 19, 2002 was oversubscribed by lunchtime yesterday,” commented Head of the Founders Committee and Vice Chairman of Dubai Islamic Bank, Sultan Saeed Al-Mansoori.
Subscriptions for the 3.3 million shares, fifty five percent of the company's equity, are still open to all United Arab Emirates (UAE) nationals until October 31. Once all applications have been submitted the allocation of shares will then be announced by November 30, 2002.
The speedy take up of the share offering comes at a time when the demand for insurance companies that conform to Islamic Shariah principles is growing. Aman is aiming to complement the development of the insurance industry in the country and build on the consistent growth witnessed during the past decade.
Shares are being sold at 10 Emirati dirhams ($2.7) each and are being offered in lots of 1,000 shares up to a maximum of 100,000 shares. An additional 30 fils per share is being charged to cover the company's expenses for organizing the subscription process. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
