Al Ansari Surges in Dubai Debut After 210 Million IPO
Al Ansari Exchange, a leading money exchange company in the United Arab Emirates, made a strong debut on the Dubai Financial Market on Wednesday. The company’s shares surged by as much as 20% in its first day of trading, after it raised 210 million dirhams ($57 million) in its initial public offering (IPO).
Background of Al Ansari Exchange
Al Ansari Exchange was founded in 1966 by the late Haji Ali Al Ansari, and is now one of the largest money exchange companies in the UAE. It has a network of over 200 branches across the country, and provides a range of services including money transfers, foreign exchange, and bill payments.
The company has been profitable for the past five years, and reported a net profit of 78 million dirhams in 2020. It has also seen strong growth in its customer base, with the number of customers increasing by 10% in 2020.
IPO Details
Al Ansari Exchange launched its IPO on March 28, offering 210 million shares at a price of 1 dirham per share. The IPO was oversubscribed by more than three times, with investors placing orders for 645 million shares.
The company raised 210 million dirhams from the IPO, which it plans to use to expand its network of branches and to invest in technology. It also plans to use the funds to strengthen its balance sheet and to increase its working capital.
Strong Debut on the Dubai Financial Market
Al Ansari Exchange’s shares began trading on the Dubai Financial Market on Wednesday, and surged by as much as 20% in its first day of trading. The stock closed at 1.20 dirhams, up 20% from its IPO price.
The strong debut was driven by strong investor demand for the stock, as well as by the company’s strong financial performance in recent years. Analysts also noted that the company’s IPO was priced at a discount to its peers, which made it attractive to investors.
Outlook for Al Ansari Exchange
Al Ansari Exchange is well-positioned to benefit from the growth of the UAE’s economy in the coming years. The company has a strong presence in the country, and is well-positioned to capitalize on the increasing demand for money exchange services.
The company also plans to use the funds raised from the IPO to invest in technology and to expand its network of branches. This will help it to better serve its customers and to increase its market share.
Overall, Al Ansari Exchange is well-positioned to benefit from the growth of the UAE’s economy in the coming years. The company’s strong debut on the Dubai Financial Market is a testament to the strong investor demand for the stock, and its plans to invest in technology and expand its network of branches should help it to capitalize on the increasing demand for money exchange services.