Abu Dhabi, May 14, 2004 - The Founders Committee of Finance House announced the closing of subscription in its shares on Thursday 6th of May 2004. The preliminary reports indicate that the total subscription in the company IPO amounted to AED 8,602,090,350 (UAE Dirhams Eight Billions Six Hundred and Two Millions and Ninety Thousands and Three Hundred & Fifty).
The IPO of Finance House was a resounding success and has set a record in the UAE in terms of coverage of offering size, recording a coverage of 74.5 times of the capital on offer to the public, which entail an allocation of 1.34 of amount subscribed. It is worthy to mention that Finance House IPO covering ratio is among the highest in the history of the GCC capital markets.
However, the Founders Committee of Finance House highlighted that the subscription amount may be susceptible to changes due to any returned cheques and/or any applications cancelled due to non-conformity to the subscription terms and conditions.
The Founders Committee of Finance House reiterated their commitment to finalize the subscription process as soon as possible and sending the allotment letters and refund amounts exceeding the offered capital of AED 110 million, in addition to the subscription fees of the unallotted shares, by June 6th 2004.
The subscription process over the past two weeks has been smooth due to the increased number of Bank’s (4 banks with 39 branches) and six brokerage companies partaking in the subscription. Over the last two days, the subscription process witnessed a large increase in terms of numbers of applications and subscription amounts.
It is worthy to mention that the Executive Council issued its approval for the incorporation of “Finance House” as a public joint stock company capitalized at AED 200 million in March 2004. Finance House’s Founders list is headed by Abu Dhabi Investment Company (20% of the Capital) and the National Investor (6.75 % of the Capital). The Total number of Founders is 189 which include investment companies, insurance companies, co-operative societies, charitable foundations, large family business groups and a well diversified segment of local society
The mission of the Company is summarized as “Providing high quality and unique financing and investment products and service that satisfies the requirements of a cross segments of the society through allocating the best financial expertise and using modern technology in away that will achieve high returns for investors, thereby, supporting the economic development of UAE’s economy.”