Al Ansari plans to double dividend payout ahead of Dubai IPO

Published: Updated:
Read Mode
100% Font Size
2 min read

Al Ansari Financial Services plans to double its dividend for 2023 ahead of its upcoming initial public offering, according to people with knowledge of the matter.

For the latest headlines, follow our Google News channel online or via the app.

The United Arab Emirates-based money-exchange firm raised its target payout to a minimum of 600 million dirhams ($164 million), according to an investor presentation seen by Bloomberg.

It plans to pay equal installments in October and April 2024 and is planning a payout of at least 70 percent of net profit after that, according to the document.

Al Ansari could list in Dubai as soon as the first quarter, Bloomberg reported in August.

Preparations for the IPO are ongoing and details such as timing could still change. The Gulf region remains a bright spot for offerings with a strong pipeline of potential listings.

The company has drawn 300 million dirhams from Abu Dhabi Commercial Bank PJSC to pay a pre-IPO dividend, according to the presentation. It declared a 300 million dirham payout as well as a 1.076 billion extraordinary dividend for 2022.

Al Ansari expects its EBITDA margin to decrease slightly this year from 2022. In 2024, it expects the margin to be “meaningfully above 2022 levels, according to the presentation. It paid 312 million dirhams in dividends in 2021 and 276 million dirhams in 2020.

A representative for Al Ansari declined to comment.

Al Ansari Exchange was set up almost 60 years ago and currently has over 230 branches in the UAE, 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 plans, according to its website.

EFG-Hermes and Emirates NBD Bank PJSC are leading the initial public offering, Bloomberg has reported.

Read more:

UAE-based money exchange Al Ansari doubles dividend payout ahead of Dubai IPO

UAE’s GDP grew 7.6 percent in 2022: Economy minister

Peninsula Real Estate in talks with Abu Dhabi firm over pre-IPO funding

Top Content Trending