Abu Dhabi-based Insurance House said it is all set to launch the first initial public offering (IPO) in the UAE in over two and a half years, on Sunday.

The company, which aims to offer key services ranging from personal insurance to commercial insurance and special insurance, aims to raise Dh66 million ($17.9 million) through the issue.

The IPO, which closes on March 9, consists of 55 per cent of the company's authorized share capital of Dh120 million.

The founders share of capital of Dh54 Million (or 45 per cent of capital) has been subscribed with Finance House taking 36 per cent of the company. The share price has been set at Dh1 per offer share with subscription fee of 3.5 fils per share.

All UAE nationals, UAE private and public entities, and federal and local governmental entities can apply for a minimum of 25,000 shares, and additional shares can be applied for in multiples of 5,000, said a company statement.

The allotment will be on a pro-rata basis, and the allotment and refund date has been set on March 23, where by investors, and for the first time in the UAE, will be earning interest on their oversubscribed amount.

The shares will be listed on Abu Dhabi Stock Exchange and further announcement will be made to confirm the listing date.

Once listed, the company will immediately open up its shareholding to foreign ownership, to the extent of 20 per cent of the company’s paid up equity share capital, said a top official.

Mohammed Abdulla Alqubaisi, chairman of Insurance House Founders Committee and chairman of Finance House said: 'The IPO is the first in the UAE in over two and a half years, and represents an outstanding achievement in the progress of capital markets in the UAE.'

The IPO advisor is FH Capital, the wholly-owned DIFC based investment banking subsidiary of Finance House.

Insurance House has appointed Mashreq Bank as the lead receiving bank, with the participation of the National Bank of Abu Dhabi (NBAD), National Bank of Fujairah (NBF) and Finance House (FH) as receiving banks.

The four participating banks will have a network of 28 branches spread strategically approach across the UAE, allowing maximum exposure, where by eight branches will be in Abu Dhabi, 6 in Dubai, 4 in Sharjah, 3 in Fujairah,  2 in Ras al Khaimah, 2 in Al Ain, 1 in Umm al Quwain, 1 in Ajman, and 1 in Madinat Zayed, the statement said.

'Given our experience in the UAE market, as well as our partnership with leading banks, we are confident of the success of this IPO, and we remain committed to providing full strategic and tactical support to ensure successful achievement of this IPO and consequently a solid start for the company,” he added.-TradeArabia News Service