Al Ansari Exchange, a leading currency exchange and remittance provider, is anticipated to list with a significant uplift on the secondary market, according to Mohammed Ali Yasin, a capital markets expert and adviser. In an interview with Khaleej Times, Yasin described Al Ansari Exchange as a strong growth story, highlighting the company’s impressive market share and ability to thrive through various crises over the years.
Recently, Al Ansari Exchange increased the retail tranche of its initial public offering (IPO) to 56.25 million shares, up from 37.5 million shares. This move raises the retail share from 5 percent to 7.5 percent, ensuring more investors can participate in the company’s growth. As a result, the qualified investor tranche will now receive 693.75 million ordinary shares, a decrease from the original 712.5 million shares.
Yasin emphasized the importance of retail investors as core players in any IPO. He noted that the initial 5 percent allotment was lower than the usual 10 percent seen in other IPOs, and believes that retail investors should be rewarded to maintain their interest in participating in future offerings.
One key factor drawing investors to Al Ansari Exchange’s IPO is the high dividend yield. With a share price range of Dh1-Dh1.03 and a promised distribution of Dh600 million in dividends, the yield is estimated to be around 7.7 percent. Yasin explained that when interest rates decrease in a couple of years, as they are expected to, this 7.7 percent yield will be particularly attractive. Consequently, the long-term upside for investors is positive, while short-term investors can still benefit from collecting dividends.
