Dar Takaful IPO

[sharewadi]

Dar Takaful Initial Public Offering (IPO), or "Takaful House", is coming soon. Here's some relevant details:

Dar Takaful IPO starts 01 July 2008 [edit] Appears to be an error in press release - was 01-12 June 2008 [/edit]
IPO ends?
Stock market: Dubai Financial Market (DFM)
Trading symbol?
Chairman of Founders Committee: Mohammed Musabah Al Neaimi
Founders General Assembly Meeting: 01 July 2008
Foreign ownership: Only for GCC nationals (possibly 25% after IPO)
Total share capital: AED 100 million
IPO shares offered: 55 million shares
Par Value: AED 1 per share
IPO share price: AED 1 per share
IPO subscription fees: 3.5 fils (0.035 dhs) per share
Minimum subscription amount: 25,000 shares, greater amounts in multiples of 1000 shares

[edit] There's an IPO prospectus on the Takaful House website which I hadn't seen before (download, PDF, 32 pages) - in Arabic only [/edit]

The Chairman says there are 4 Islamic insurance companies. Here's 4 that I can think of:

Abu Dhabi National Takaful (TKFL) listed on the (ADX)
Dubai National Insurance (AMAN) listed on the (DFM)
Methaq Takaful (METHAQ) listed on the (ADX) May 2008, Methaq IPO was Feb 2008
Salama Islamic Arab Insurance Company (IAIC) listed on the (DFM)

Going by the performance of Methaq after it listed (10% limit up every day in the first week of listing until it hit about 4 dhs per share, IPO price was 1 dhs per share), it would appear Islamic insurance companies are the hot stock at the moment. PEs of 25 for IAIC, 30 for Aman, 73 for TKFL, and 250+ for Methaq indicate the market thinks they're worth paying extra for (I think average market PE is around 15).

PE estimates are based on 08Q1 earnings, except for Methaq I've used their estimated 08FY profits (see Methaq research)

I guess Dar Takaful will fly too then

Press Release 26 May 2008:

“Takaful House” available for public Founders of "Dar Takaful", a public joint stock company, announced that shares of the company will be available for acquisition starting the 1st of July 2008. With a total of Dh100 Millions distributed over 100 Million shares, and a nominal value of one Emirati Dirham per share, the company will offer 55 Million shares for public acquisition, representing (55%) of the total capital for a nominal value of Dh1 per share. In addition to 3.5 fils per share as issuance expenses. This announcement regarding "Takaful House", comes inline with the continuous success achieved by "Mawarid Finance" (Mawarid), which attained a net profit of Dh95.1 Millions in a period less than 1 year from its launch. "Mawarid Finance" is considered one of the major investors of "Takaful House". The chairman of the "Takaful House" founders committee, Mohammed Musabah Al Neaimi clarified that company shares are available for companies and individuals (Nationals & GCC Citizens), and the companies registered in the UAE owned by nationals. Al Neaimi reviewed the conditions of shares acquisition, and clarified that the minimum limit for subscription was set at 25000 shares for each form, with multiples of 1000 shares. He also stated that the 1st of this coming July will witness the meeting of the first founding general assembly. The Chairman of the founders committee further pointed out the key differences between Conventional insurance and Islamic insurance (Takaful), which comes in compliance with the teachings of Islamic Sharea, and has always been received well by clients seeking alternative for the conventional insurance. To do away with prohibited "Riba" associated with interest schemes. Takaful insurance is a kind of mutual collaboration and cooperation between clients, who are partners in liability. In addition to the above, Takaful insurance is distinguished from other schemes, which consider insurance amount surplus as profit for the company in case of no accidents or damage. However, in Takaful, this surplus is distributed on clients insured at the company as determined by the "Fatwa and Sharea Monitor Authority". Al Neaimi anticipated a rise in the shares of Takaful companies in the UAE insurance market, due to the success of the Islamic banking scheme, and the series of success achieved by Takaful scheme insurance companies. in addition to the client's awareness about the difference between commercial and Takaful insurance. Clients are keen to avoid suspicious dealings associated with "Riba", hence, they targeted the Takaful market, which scored an income of around $6 Billion in 2006. He further pointed that the UAE provides a suitable environment to become an international capital for Islamic dealings and Takaful activities, as proved. Therefore, we can say that "Takaful House" came to exist in the right time and place. Al Neaimi also pointed that four Takaful companies are operating in the country currently, with total installments of Dh832 Millions collected by the four companies, what represents 11% of the total size of the market. Based on figures, this sector of the market is witnessing a great deal of growth, knowing that the concept of Takaful was introduced to markets recently. The chairman of the "Takaful House" founders committee, Mohammed Musabah Al Neaimi, said that according to studies and reports, the country had 48 insurance companies by the end of 2006 (24 local and 24 foreign). National insurance companies set a new record of Dh4.6 billion until June 2007, according to the last half financial results of all national insurance companies Listed in the local. Results also indicate an increase in the total net profits of up to Dh1,114 billion compared with profits of up to Dh541 million during the same period of last year, thereby realizing the growth rate of 112%, which is a positive indicator that confirms companies have moved beyond the plight of fluctuations in the stock market and securities in 2006. Al Neaimi reviewed the activities to be conducted by the company in the areas of Takaful insurance and reinsurance based on the Islamic concept of Takaful, including cars, property, against fire, ships and shipping, work risks, personal accidents, engineering, construction, various accidents, civil liability, health and family, consultancy regarding Takaful insurance and reinsurance. He announced that after closing the shares acquisition, "Takaful House" would request to the securities and commodities authority, as well as the Dubai Financial Market to include its shares in the later. He assured that the offering the shares came in accordance with the terms and conditions applicable to the securities and commodities authority in the UAE, adding that shares has not been registered with any other regulatory body in another country.

[edit] Ticker updated in link [/edit]
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UAE IPO list | posting guidelines

[sharewadi]

DFM 23 July 2008:

DFM: Announces to shareholders transferring the shares register of Takaful House- DAR-TAKAFUL at DFM today, 23 July 2008.

Presumably the shares of Takaful House / Dar Takaful have ticker (DAR-TAKAFUL), and will be listing soon. No further details supplied by DFM.

The recent Emirates Takaful listing was about 10 days after the transfer of the shareholder register, so maybe we can expect Dar Takaful to list around 31 July or 03 August 2008?
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UAE IPO list | posting guidelines

[sharewadi]

There's a press release, or statement, referred to in a couple of reports that apparently says Dar Takaful / Takaful House (DAR-TAKAFUL) will list on the DFM on 04 August 2008, and up to 25% of the shares will be available for foreign ownership.

According to the Takaful House Chairman, Mohamed Musabbeh Al Neaimi, a balance sheet will be made available apparently, and Takaful House branches will open in all emirates shortly (whatever "shortly" means).

Of course, the disclosure isn't available on the DFM website .

[edit] Ticker updated in link [/edit]
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UAE IPO list | posting guidelines

[ranesha]

It's official.Dar takaful is listing on 4th August as per Mubasher.info. As expected,no information on DFM site.

[sharewadi]