Wednesday 3 August 2022

#UAE Al Ansari Exchange Considers #Dubai IPO Early Next Year - Bloomberg

UAE Al Ansari Exchange Considers Dubai IPO Early Next Year - Bloomberg

Al Ansari Exchange is considering an initial public offering early next year, according to people familiar with the matter, in a sign that companies are pushing ahead with plans to go public despite a recent dip in investor appetite.

The UAE-based money-exchange firm held initial talks with potential advisers about the Dubai listing that may happen in the first quarter of 2023, the people said, asking not to be identified as the information isn’t public. Details are preliminary and may change, they said.

“Al Ansari Exchange has been evaluating the idea of going public for some time, however no final decision has been made yet,” Chief Executive Officer Rashed Al Ansari said in response to a request for comment. The company will monitor the market and “make an announcement accordingly,” he said.

The Gulf region has largely been a standout market for IPOs during the first half, despite a few lackluster trading debuts in recent months. High oil prices have contributed to a flurry of share sales and significant equity inflows, in sharp contrast to most other global markets where listings have slowed to a trickle due to soaring inflation and concerns about a potential economic recession.

Now, the global downturn may be catching up with Gulf markets and dampening investor appetite. After being among the world’s best performers at the start of the year, the region’s main equity indexes have since given up many of their gains. The last two listings in Dubai -- supermarket operator Union Coop and property firm Tecom Group -- both slumped on their debuts.

Al Ansari Exchange was set up almost 60 years ago and currently has over 200 branches in the United Arab Emirates, making it one of the largest exchange companies in the country. In addition to exchange services it offers remittances, services for paying domestic workers and savings schemes, according to its website.

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