Dubai Financial Market Announces Share Allocation

The public tranche of the DFM IPO, excluding the quota for UAE nationals, collected AED199.5 billion and was oversubscribed 308 times
The UAE nationals tranche collected AED 1.4 billion and was oversubscribed 7.5 times
Allocation of preferential tranches including retired and Dubai Government employees is 1:1

Dubai Financial Market (DFM) today announced that share allocation of its landmark AED1.6 billion Initial Public Offering (IPO) has been concluded and collected AED 201.2 billion. Excess funds will be returned to investors on December 10, 2006.

Essa Kazim, Director General of DFM, said: “On behalf of the DFM, I would like to sincerely thank all investors for their strong support for the IPO. I would also like to thank our banking partners for their support. Investor response to this landmark IPO is an indication of their trust in the company, its future growth potential and market leadership status.”

“We extend our great appreciation and sincere regards to H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, and Ruler of Dubai. His directives have resulted in a high share distribution among UAE nationals, as well as a fair distribution amongst private and public categories,” Kazim added.

80 millions shares representing 5% of the total offered shares are allocated to the Ministry of Finance, considering that these shares were deducted proportionally from all tranches as mentioned in the prospectus. Allocation of the offered shares in different tranches is as follow:

The preferential tranche of 684 million shares were fully subscribed. All the subscribers in the preferential category including Dubai Government employees and retired employees have been allocated shares in the ratio of 1:1.

The public tranches of 836 million shares collected AED 200.5 billion, The allocation is as following:

About 76,367 subscribers applied to the UAE national tranche of 190 million shares, which collected AED 1.4 billion and was oversubscribed about 7.5 times. The UAE national will get the minimum of 1000 shares plus 8.74% of the rest.
The public tranche of 646 million shares collected AED 199 billion and was oversubscribed 308 times. The allocation is 0.334% of the number of shares applied for.