ABU DHABI
Abu Dhabi Securities Exchange, ADX, recently hosted a briefing session on the capital restructuring of United Insurance Company, UIC, in an effort to maintain the positive links between the exchange and its listed companies, brokers, and investors.
ADX Chief Executive, Rashed Al Beloushi, UIC Board Member, Nawwaf Gobash, and senior management from both sides, as well as a number of registered brokers in ADX attended the discussions, which were aimed at demonstrating all details related to capital restructuring, special offering for shareholders, and UIC future plans.
The start date for subscription to the capital increase shares on ADX began on April 26 and will end on May 18, while the Rights issue began on April 19, and will end on May 11 for shareholders of the company.
The capital restructuring of UIC includes offering 75 million shares of rights issue at price of Dh1.02 for every 3 new shares, against 4 outstanding shares. The strategic partner Fidelity Assurance and Reinsurance will cover 25 millions of remaining shares.
Al Beloushi commented, “ADX has offered all the possible facilities to ensure a successful underwriting transaction of UIC rights issue. UIC is one of three companies to offer rights issue transaction in ADX. ADX has the experience and the efficiency to manage successfully concluded transaction.”
He reiterated, “ADX always seeks to offer innovative, efficient, and transparent services for investors, listed companies and stakeholders in line with the best global practices used in capital markets.”
Gobash gave presentation on capital restructuring of UIC that is aimed at minimising the last year losses of Dh100 million. It is also aimed at decreasing the capital and removing shares owned by each shareholder, indicating that the company will increase its capital to Dh100 million again, through the new liquidity generated from the subscription of the current shareholders of the company and the strategic partner.
“I am pleased by the support offered by ADX, Securities and Commodities Authority and UIC’s strategic partner and shareholders. The insurance sector has many opportunities which will be generated after the revision of prices of insurance policies and diversifying the services offered by the sector, in addition to the positive indications of the audited financial results of the company for the year 2016,” said Gobash.
“The subscription opportunity in UIC is unique because it has assets and operations. In addition to the importance of the role the strategic partner which has huge experience regionally will play,” said Majd Ma’aytah, representative of First Abu Dhabi Bank, the lead receiving Bank for the Rights issue.
