UAE’s Al Ansari doubles dividend payout ahead of Dubai IPO

UAE’s Al Ansari doubles dividend payout ahead of Dubai IPO

Dubai: Al Ansari Financial Services plans to double its dividend for 2023 ahead of its upcoming initial public offering, according to people with knowledge of the matter. The UAE-based money-exchange firm raised its target payout to a minimum of Dh600 million, according to an investor presentation seen by Bloomberg. It plans to pay equal installments in October and April 2024 and is planning a payout of at least 70 per cent of net profit after that, according to the document. Al Ansari could list in Dubai as soon as the first quarter, Bloomberg reported in August. Preparations for the IPO are ongoing and details such as timing could still change. The Gulf region remains a bright spot for offerings with a strong pipeline of potential listings. The company has drawn Dh300 million from Abu Dhabi Commercial Bank to pay a pre-IPO dividend, according to the presentation. As well as a Dh300 million payout last year, Al Ansari paid Dh1.076 billion as an extraordinary dividend. Al Ansari expects its EBITDA margin to decrease slightly this year from 2022. In 2024, it expects the margin to be “meaningfully above 2022 levels,” according to the presentation. It paid Dh312 million in dividends in