Abu Dhabi-based National Takaful Company (Watania) aims to raise Dh82.5 million ($22.46 million), representing 55 per cent of total share capital, through its initial public offering which opens tomorrow (April 18).

A Sharia'a-compliant (Islamic) insurance company, Watania said it expected record demand as the company's founding shareholders - Abu Dhabi National Islamic Finance (Adnif), Abu Dhabi National Insurance Company (Adnic), Abu Dhabi National Energy Company (Taqa), and Aldar - were among UAE’s strongest institutions.

Watania's founders have subscribed to an aggregate value of Dh67.5 million shares representing 45 per cent of the total share capital of Dh150 million.

The National Bank of Abu Dhabi (NBAD) has been mandated as the financial advisor, lead manager, and the receiving bank for the Watania IPO.

The subscription will be accepted at all NBAD branches across the UAE starting from Monday until May 1, said a company statement.

The offer price for each share is fixed at Dh1 with an additional Dh0.05 as subscription fee per offered share. The shares will be listed on the Abu Dhabi Securities Exchange.

The public offering is being offered in two tranches, said the Abu Dhabi company. The first tranche, comprising 20 million shares, or 13.33 per cent of the total capital, is open to UAE nationals only, who can subscribe to 5,000 shares.

The second tranche, which comprises 41.67 per cent of the total capital, is allocated on a pro-rata basis for all individual and institutional investors who can apply for a minimum of 10,000 shares, with additional subscriptions in multiples of 1,000 shares. The refund date has been set for May 15, 2011.

Commenting on the IPO, Aref Ismail Al Khouri, chairman of Watania’s founders’ committee and managing director of Adnif, said, the commitment of its founding shareholders underscores the company’s capital strength and the promise of the offering.

“Watania will play a vital role in developing the growing Shariah-compliant insurance industry in UAE and provide critical insurance support for all organizations participating in the realization of Abu Dhabi Vision 2030. The tremendous growth opportunities in this sector make Watania an attractive investment,” he added.

Ahmed Wahdan, the head of equity capital markets at NBAD’s Investment Banking Group, said Takaful will be able to implement its ambitious business plan and succeed with the support of the organization’s founders and a seasoned management team.-TradeArabia News Service