Takaful Emarat raises $13m during first rights issue
DUBAI, December 16, 2015
Takaful Emarat, the Dubai Financial Market-listed, shariah-compliant life and health insurer, has raised Dh50 million ($13.6 million) during the first tradable rights issue for a takaful insurance company in the UAE.
The rights issue, which was launched on November 1 and closed on December 12 was 36.51 per cent oversubscribed with Dh68.257 million shares fully subscribed, said a statement.
The proceeds of the oversubscribed shares will be refunded to the shareholders after allocation of shares starting from December 20, and the new shares shall be listed in DFM following SCA approval to list the news shares, The rights issue is central to a comprehensive capital plan in support of Takaful Emarat's strong growth momentum, it said.
Meanwhile, 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.
The capital will also be invested in the company’s digital and interactive client service technologies to ensure optimal customer service and efficient policy management.
In addition, the funds will be used to streamline Takaful Emarat´s investment, ensuring a more stable and predictable income and return on investment.
With Takaful Emarat positioned as one of only two Takaful insurers approved by the Dubai Health Authority to provide health insurance as part of its current roll out of mandatory health insurance, significant market opportunities exist for the Company, said the statement.
As part of the rights issue, management embarked upon a range of public education initiatives which included DFM broker and investor meetings as well as media relations in order to explain Takaful Emarat’s business strategy and growth potential, it said.
Wael Al-Sharif, Takaful Emarat’s chief executive officer, said: “As a business, we have excelled with this rights issue successfully raising Dh50 million with strong shareholder support despite volatile markets.
"Takaful Emarat has delivered significant progress to date both from a financial and customer acquisition perspective as we continue to expand our distribution channels and physical presence across the UAE. We are now uniquely well positioned to continue our growth trajectory as we focus on delivering maximum value for our shareholders and investors.” - TradeArabia News Service
