Amanat Company – a public, under establishment company, will begin the initial public offering (IPO) of 55% of its shares, equivalent to 1.375 billion shares at par value AED 1 per share added to AED 0.02 issuance fees, according to Al Etihad newspaper.

Banking sources have confirmed that receiving banks are ready to receive IPO subscriptions as of Monday morning and until the closing of the IPO on November 4, via 105 branches for the nine receiving banks.

The banks are expected to see a gradual demand for subscription during the first few days of the IPO, the sources said, adding that they expect this demand to increase during the final three days.

Furthermore, these banks have been chosen based on the geographical distribution and the expected density of demand, they noted, indicating that the IPO will be made available via electronic means used during the Emaar Malls IPO as receiving banks are linked to the Dubai Financial Market (DFM) database to facilitate the subscription process in record time.

The IPO is expected to see a strong response despite the current fluctuation in local and international markets, the sources highlighted, noting that it might be possible to commence the listing of Amanat before the set date of November 29.

Oversubscriptions will be returned within five days of closing the IPO, which will recycle liquidity in the market in a short time.

According to the IPO prospectus, the first tranche of the IPO, amounting to 1.306 billion shares will be allocated to Emirati and non-Emirati individuals and institutions, with a minimum subscription of 5000 shares. Any further subscriptions in this tranche can be done in doubles of 1000 shares.

The second tranche comprising 68.750 million shares will be allocated to the Emirates Investment Authority (EIA), in accordance with Article no. (80) of the Federal Law no. 8 of 1984, which gives the authority the right to subscribe in in any public joint-stock company established in the UAE, and which launches and IPO. The amount of shares available for the authority to subscribe in may not exceed five percent for the offered shares.

The National Bank of Abu Dhabi (NBAD) represents the lead bank of the IPO and is among the receiving banks, as well as Emirates NBD, a leading participating and receiving bank, added to Dubai Islamic Bank (DIB), Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Ajman Bank, Union National Bank (UNB), Finance House and NBAD Finance, whereas SHUAA Capital will be responsible for managing the listing.