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Investors confident in Amanat; IPO fully subscribed in a week

Investors confident in Amanat; IPO fully subscribed in a week
Marka
MARKA
2.23% 0.28 0.01
Emaar Malls
EMAARMALLS
7.88% 2.60 0.19
Emaar
EMAAR
1.10% 8.24 0.09
Healthcare and education company Amanat Holdings has revealed that its AED 1.375 billion ($374 million) initial public offering (IPO) has been fully subscribed with one week since subscriptions for the start-up began, according to Reuters.

Amanat’s IPO commenced on October 20, 2014, a time when other UAE firms were taking advantage of the strengthening economy and growing investor confidence in the market. Offering 55% of its capital for subscription at AED one per share, the UAE-based firm opened its IPO to both retail and institutional investors on the Dubai Financial Market (DFM).

Moreover, the Holding Company plans to use 70% of the funds from its IPO to invest in education and healthcare.

Amanat is the latest addition to a stream of IPOs entering the UAE’s stock markets. Earlier this month, Emaar Properties offered 15% of its malls group for public subscription. Similarly, Marka, which had launched its IPO in April, got listed on the DFM in late September.

Noteworthy, Emaar’s IPO drew orders worth $47 billion, the largest IPO in the UAE following a five-year hiatus.

Other Gulf Cooperation Council (GCC) countries are following suit with Saudi Arabia’s National Commercial Bank’s (NCB) IPO currently named as the largest in IPO in Saudi Arabia’s history and expected to be the second largest worldwide, after the Ali Baba IPO.

It worth noting that Amanat Chairman had previously said that the Company expects to purchase stakes in around three to six companies within the coming two years.