Takaful Emarat rights issue nearly 36.5% oversubscribed
Dubai, UAE: Al Tamimi & Company, the Middle East's largest law firm, has led the first Rights Issue on the Dubai Financial Market (DFM). The Rights Issue, launched by DFM-listed Takaful Emarat, the Shariah-compliant life and health insurer, was 36.51% oversubscribed, with AED 68.25 million shares fully subscribed. The National Bank of Abu Dhabi ("NBAD") has acted as the lead financial advisor for the Company.
Ahmed Ibrahim, Partner & Head of Equity Capital Markets, Al Tamimi & Company, said;
"We expect that other insurance companies and banks will raise their issued capital during 2016, and it will be fascinating to see how many other companies and banks will tap into this."
"Being the first Rights Issue in Dubai, the management team of DFM has demonstrated a very cooperative attitude and a very pragmatic approach."
Takaful Emarat's Rights Issue was launched on 1 November and closed on 12 December. The proceeds will be used to capitalise on the Company's recent restructuring under a new management team and its return to operating a profitable underwriting model. Building on this growth, the new capital will be used to strengthen Takaful Emarat's back office function, grow and develop its distribution channels and sales network across the UAE in particular in the Northern Emirates.