There was a notice in the Gulf News this morning saying Dubai Islamic Insurance and Reinsurance (AMAN) were having an Extraordinary General Meeting (EGM) to vote on:
1. allowing 15% foreign ownership (currently 0%)
2. 10:1 share split (par value would change from 10 dhs to 1 dh per share)
Date: Sunday 18 May 2008 at 4:30pm (if no quorum, then postponed to Sunday 25 May 2008)
Location: 13th floor, Conference Hall, Dubai (what's the "Conference Hall"?)
A couple of other insurance companies in the UAE have opened up to foreign ownership in the past year or so (or intend to) - (ABNIC), (DNIR), (IAIC), (RAKNIC), (UIC).
AMAN share price was up 7.3% to 32.20 by lunchtime today, but has dropped back a little to 31.35, still up by 4.5% on Thursday's close of AED 30.00 per share.
Presumably this was the original disclosure on the DFM website, which didn't actually tell us anything...
DFM 21 April 2008:
(AMAN) Dubai Islamic Insurance & Reinsurance: Announces its EGM to be held on 18/05/2008
(AMAN) Dubai Islamic Insurance and Re-insurance Company: Announces postponing of its EGM to 25/05/2008 for the lack of quorum
DFM disclosure in Arabic says more than the press release from Aman...
Press Release 18 May 2008:
Aman re-schedules Extra Ordinary Annual General Meeting
Dubai: The Extra Ordinary Annual General Meeting of the Dubai Islamic Insurance and Re-insurance Co. (AMAN) which was scheduled for Sunday May 18th has now been postponed. The meeting will now take place on Sunday May 25th at the Dubai Chamber of commerce and industry at 4:30pm.
The agenda is two-fold and will discuss whether expatriates will be entitled to 15% ownership of the company share holding and also the fragmentation of the shares from AED Ten to AED one.
Aman Extraordinary General Meeting (EGM) approved foreign ownership of its shares to 15%, and a 10:1 share split. Par value will change from AED 10 to AED 1 per share.
It's not obvious to me from what date these resolutions take effect. Aman share price fell 0.5% to 37.10 today, so obviously the share split wasn't today.
DFM 26 May 2008:
(AMAN) Dubai Islamic Insurance: Announces the resolutions of its EGM held on 25/05/2008
Press Release 25 May 2008:
Aman agrees to offer 15% of Aman Shares to Expatriates
The announcement was made at Aman’s Extra Ordinary Annual General Meeting.
Dubai: At an Extra Ordinary Annual General Meeting called by Dubai Islamic Insurance and Re-Insurance Company (AMAN) held today at the Dubai Chamber of Commerce, the Board of Directors agreed introducing and allowing expatriates to own a percentage of the company’s share holding.
In a statement released by Aman it stated that the General Committee agreed upon the two recommendations of the Board of Directors; Divide Aman’s shares denomination from AED 10 to AED 1 and to allow expatriates to acquire 15% of the company shares.
His Excellency Mr. Hussein Mohammed Al Meeza, Deputy Board Member and Managing Director of Dubai Islamic Insurance and Re-Insurance Company (Aman), said: "These agreements are of immense importance to the company, and comply with the Company’s shares restructuring. It is a direct response and in line with the shareholders’ wishes."
Mr. Al Meeza added that this division will lead to the increase of shares and benefits in the market. Commenting on the agreement allowing expatriates to own 15% of the company stakes, Mr. Al Meeza stated: “This decision will have a positive impact. It will bring diversification and inject capital investment in the market. This is simply due to the fact that there are so many UAE residents that are willing to invest locally. We, at Aman, are giving them the opportunity to invest and bring shared benefits to the parties involved.”
Mr. Hussein Al Meeza assured that Aman strives to provide innovative products in the Takaful Insurance Sector and to diversify its investments as part of its concern regarding the shareholders’ rights. He also pointed out that Aman is determined to continue to play a leading role in the Takaful sector and to expand regionally to build a strong base in the Takaful industry.
Well, now we know the dates of the Aman share split. I did ask them at the time of the original press release what the dates were but they never got back to me. Not much of an investor-friendly disclosure policy then .
DFM 02 June 2008:
(AMAN) Reminder: Today 02/06/2008, is the last trading date to entitle for Dubai Islamic Insurance stock split accordingly trading will be suspended tomorrow 03/06/2008 to execute the action.
DFM 03 June 2008:
(AMAN) DFM: Suspend trading on Dubai Islamic Insurance shares to execute the stock split action.
From when, Foreigners can start buying AMAN shares. Is it tomorrow.
I presume the foreign ownership date is the same as the share split date, i.e. from tomorrow. Your broker might know. I did send an email to Aman myself, but they never replied . I've just sent it again, and will update here if I get a reply. _________________ UAE IPO list | posting guidelines
I just received an email saying foreign ownership should be from tomorrow 04 June 2008 (fast reply - that's more like it ). _________________ UAE IPO list | posting guidelines
This is one of share which was actively traded even though it was only for nationals before tommorrow. It is also shariah complaint.
This is the 52 WK H(38.60) L(16.35), current price is 36.95. After stock split and 10%dividend, I guess the share value may get listed around 3.2 (not sure)
I would like to enter asap at the market price. InshaAllah I hope share may take new level tommorrow.
May be the experts can add more value by their technical analysis.
Not much of a disclosure from AMAN. It's not in English - yet another company that allows foreign ownership but then shows how little interest they have in keeping foreign owners informed. It's been a week of that sort of thing for the UAE stock markets. Sigh
DFM 19 June 2008:
(AMAN) Dubai Islamic Insurance: Approval for foreigners to hold & trade with company’s shares up to 15% & executing the action in DFM starting on 22 June 2008
AMAN: Approval for foreigners to hold & trade with company’s shares up to 15% & executing the action in DFM starting on 22 June 2008.
Is it means the above rule is executed only from 22nd June.
I placed on order on 5th or 7th June (don't remember) which is the next day after the share split. I placed the order to buy at preopen time and my broker called me at 11am saying that the limit is up for foreigners.
How can this be possible. There is no transparency and also no clarity with in brokers.
I just received an email saying foreign ownership should be from tomorrow 04 June 2008
Which turned out to be incorrect. I asked them again a week later about a date from when foreign trading would be permitted but never received a response
laser wrote:
... and my broker called me at 11am saying that the limit is up for foreigners.
I got the same message when I tried with my online account. Technically it's correct since the limit for foreign ownership at the time was 0% and you were trying to exceed that .
laser wrote:
There is no transparency and also no clarity with in brokers.
Brokers ... companies ... markets ... this week seemed to be particularly bad - see the Thursday UAE stock report. Ironic that it was the week the report that the UAE MSCI Emerging Markets index was reportedly happening. _________________ UAE IPO list | posting guidelines
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. I've just sent it again, and will update here if I get a reply.
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