Green Crescent IPO

[sharewadi]

Khaleej Times 19 June 2008:

Green Crescent's Dh137m IPO gets positive response ABU DHABI — Green Crescent Insurance Company (GCIC), a new company dedicated to health insurance in the country, said response to its Dh137 million public issue opened for subscription last week is positive. The IPO will be closed on June 23. GCIC is raising Dh250 million through its IPO, out of which Founders have subscribed for Dh112.5 million, 45 per cent of the total paid up capital. Carl Sardegna, chief executive officer of GCIC told reporters that with the introduction of mandatory healthcare services, Abu Dhabi has opened new business opportunities for the insurance sector. Currently health insurance penetration rate in the country is 26 per cent, and total market size is Dh3.2 billion, he said, suggesting that the sector will continue grow at an annual rate of 10-11 per cent. The new company after setting up its operations in the UAE, will aggressively look forward for expansion in the GCC through a well developed strategy. He said : “We anticipate our business to be propelled by the region's growing population, and most of all, by consumers who, having been exposed to private health insurance, will drive demand for sophisticated products that meet their needs.” “Opportunities abound for specialised health insurance players and we are confident in tapping the market with the right focus on people's needs, innovative products and superior services at competitive rates,” he said. Dr Mohamad Saeed Al Badi, chairman of the GCIC Founders Committee, said given the transformation taking place in the health insurance sector, the Founders of GCIC have identified opportunities to penetrate the market by offering specialised health insurance products and services and superior service. GCIC will introduce proven US and international health insurance best practices, processes and technologies to consistently provide the best solutions and services to its customers. GCIC expects to launch its suite of products in the last quarter of 2008. The board of directors consists of some of the most eminent personalities and businessmen who include, Shaikh Saeed bin Hamdan Al Nahyan, chairman, Dr Mohammad Saeed Al Badi Al Dhaheri, Mohamed Obaid Khalifa Jaber Al Murrer, Carl J. Sardegna and Dr Sami Ali Al Amri.

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[sharewadi]

Green Crescent IPO is from 14-23 June 2008 according to their website, but this press release from yesterday says it starts "today" ...

Press Release 18 June 2008:

Green Crescent specialist health insurance player enters UAE Green Crescent Insurance Company (GCIC), one of the first private companies dedicated to health insurance in the region, today announced the launch of its initial public offering (IPO) on the Abu Dhabi Securities Exchange. GCIC will raise a total of Dhs250m through its IPO. Founders subscribed for Dhs112.5m shares or 45% of the offering. The public offering consists of Dhs137.5m shares at 1 Dirham per share plus issuance fee of 2.5 fils per share. GCIC's IPO subscription offer period closes on 23 June 2008. H.E. Dr. Mohamad Saeed Al Badi, Chairman of the GCIC Founders Committee, commented: 'Given the transformation taking place in the health insurance sector, the Founders of GCIC have identified opportunities to penetrate the market by offering specialized health insurance products and services and superior service.' The first Board of Directors consists of some of the most eminent personalities and businessmen who include, H.E. Sheikh Saeed Bin Hamdan Al Nahyan, Chairman, H.E. Dr. Mohammad Saeed Al Badi Al Dhaheri, Mr. Mohamed Obaid Khalifa Jaber Al Murrer, Mr. Carl J. Sardegna and Dr. Sami Ali Al Amri. GCIC will offer products targeted at the enhanced market population. The policy portfolio will provide coverage in the local, regional, and global marketplace. GCIC will develop its own suite of products customized to meet the unique needs of clients first in the UAE and subsequently in the region. GCIC will introduce proven U.S. and international health insurance best practices, processes and technologies to consistently provide the best solutions and services to its customers. GCIC expects to launch its suite of products in the last quarter of 2008. Mr Carl Sardegna, Chief Executive Officer of GCIC said: 'We anticipate our business to be propelled by the region's growing population, and most of all, by consumers who, having been exposed to private health insurance, will drive demand for sophisticated products that meet their needs, and by clients who recognize the importance of health insurance in attracting and retaining employees. Opportunities abound for specialized health insurance players and we are confident in tapping the market with the right focus on people's needs, innovative products and superior services at competitive rates.' GCIC has also entered into a contractual agreement with NYSE-listed Aetna Insurance Company (Aetna), one of the largest health insurance providers in the world, to provide access to its U.S. network. Aetna will also provide consulting services to GCIC. CAPM Investment is the appointed Lead Manager of GCIC's IPO. About GCIC: Green Crescent Insurance Company (GCIC) is a public joint stock company under establishment that aims to be the leading and highest quality health insurance provider in the region. GCIC will use proven US and international health insurance best practices, processes and technologies to consistently provide the best solutions and services to its customers. GCIC has entered into a contractual arrangement with Aetna Insurance Company, one of the largest insurance companies in the U.S. The Founders Committee comprises of H.E. Sheikh Saeed Bin Hamdan Al Nahyan, Chairman, H.E. Dr. Mohammad Saeed Al Badi Al Dhaheri, Mr. Mohamed Obaid Khalifa Jaber Al Murrer, Mr. Carl J. Sardegna and Dr. Sami Ali Al Amri. Founders' Committee The Founders' Committee comprises of: H. E. Dr. Mohammad Saeed Al Badi Al Dhaheri, Chairman H.E. Sheikh Saeed Bin Hamdan Al Nahyan Mr. Carl J. Sardegna Dr. Michael Dillon Board of Directors The first Board of Directors of the Company will be comprised of: H.E. Sheikh Saeed Bin Hamdan Al Nahyan, Chairman H.E. Dr. Mohammad Saeed Al Badi Al Dhaheri Mr. Mohamed Obaid Khalifa Jaber Al Murrer Mr. Carl J. Sardegna Dr. Sami Ali Al Amri The following is a brief profile of the members of the first Board of Directors: H.E. Sheikh Saeed Bin Hamdan Bin Mohamed Al Nehayan; graduated from the Britannia Royal Naval College, Dartmouth in the United Kingdom, he completed his advanced training at the United States Naval Training Command in San Diego, California. He then completed the Staff Course and most recently the Command Course at the United States Naval War College in Newport, Rhode Island. He is presently a Captain in the UAE Navy and Deputy Chief of Naval Operations UAE. H.E. Dr. Mohamed Saeed Al Badi Al Dhaheri; is the former Chief of Services of the UAE Armed Forces and the former Minister of the Interior for the UAE. Mohamed Obeid Al Jaber; Mr. Al Jaber is the Chief Executive Officer of Al Jaber Group. He is a graduate of Business Administration from the UAE Higher Colleges of Technology in 1993. Prior to becoming the CEO, Mr. Al Jaber was the Chief Finance Officer of the Group. Mr. Al Jaber leads the expansion team in Al Jaber Group and is behind a number of successful joint ventures. In addition to his achievements at Al Jaber Group, Mr. Al Jaber has a remarkable record of launching successful companies and businesses in various sectors of the economy. He is also currently a board member of Emirates Insurance Company and an ex-board member of Abu Dhabi Chamber of Commerce and Industry. Mr. Carl J. Sardegna; has been Vice Chairman of the Board of FutureHealth® Corporation since 1998 until 2006. FutureHealth is a population risk management company that supervises healthcare for over 750,000 employees and dependents. Mr. Sardegna was also Chairman and CEO of the Maryland Blue Cross / Blue Shield Plan covering 1.5 million members. As part of this managed care program, Mr. Sardegna created two subsidiaries, Greenspring and Paradigm. Prior to this Mr. Sardegna served as Executive Vice President of UNUM, the country's largest provider of long term disability. He was part of its initial billion-dollar public offering changing from Union Mutual (a mutual insurance company) to a public stockholder company. Mr. Sardegna's responsibilities were largely those of COO. Dr. Sami Ali Al Amri; is currently the President of Quantum Consulting (QC). He began his career with Ernst & Young in the Middle East in 1966 and then held a number of senior positions in Canada. He rejoined Ernst & Young in London as a Manager of Corporate Advisory Services and then became a Managing Partner of Business Advisory Solutions for Ernst & Young in the Middle East. Dr. Sami has a PhD from the United Kingdom, an MBA from the United States and B.Com from Canada. He is a member of various recognized institutes and holds the Certified Management Accountant and Certified Internal Auditor certificates.

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[fastrader]

Sharewadi,

Great forum. I have been keeping a close watch on shares and your forum provides the best insights....

The article on Khaleej Times mention that this IPO are only for UAE Nationals and the one above keeps silent. Any idea whether they have lifted this restriction?

Also, do you know who is the receiving bank?

Thanks

[sharewadi]

Hello fasttrader and welcome to the how-green-is-my-crescent stock IPO forum, and thanks for the positive feedback .

It looks like the IPO is only for UAE nationals (or companies). Receiving banks are not given on the Green Crescent website (www.green-crescent.com) from what I could see but based on the contact email addresses, they might include

Finance House (FH)
National Bank of Adbu Dhabi (NBAD)
Union National Bank (UNB)

If I can find a prospectus, I'll add something more.

GCIC website 21 June 2008:

Offering Terms Share Capital: 250 million Dirhams divided into 250 million shares. Capital subscribed by founders: 112.5 million Dirhams represent 45% of the capital. Shares available for public subscription: 137.5 million Shares of which 12.5 million shares are offered to the Ministry of Finance & Industry of the UAE. The balance will be available for public offering. Subscription Price: 1 Dirham per Share in addition to issuance fee of 2.5 Fils per Share. Minimum Subscription: 10,000 shares with multiples of 1,000 shares per subscriber. Maximum Subscription: 137.5 million Shares per subscriber. Eligibility for Subscription: The Offer is open for UAE National individuals of the legal age of 21 years and above; Companies or commercial entities registered in UAE and wholly owned by UAE Nationals; and Public bodies and authorities of the Federal and Local governments of the UAE. Allotment Policy: In case of over-subscription on offered shares, the Founders will apply a proportionate allotment policy for all subscribers to allocate the available shares on a pro-rata basis. 5% of shares offered for public subscription shall be allocated for the Ministry of Finance and Industry of UAE in accordance with terms of Federal Law No. (14) year 2006. Subscription Forms: The Applicant wishes to apply for Shares must obtain and complete a Subscription Form from one of the specified branches of the Receiving Banks. Photocopies of the Subscription Form will not be accepted in any circumstance. Subscription Starting Date: 14/06/2008 Subscription Closing Date: 23/06/2008 Allotment and Refund of Oversubscription Fund: 2/07/2008 Date of Founding General Assembly – First meeting: 9/07/2008 Date of Founding General Assembly – Second meeting (if quorum not achieved in first meeting): 13/07/2008 Share Listing: Within two weeks from announcing the incorporation of the Company IPO Contacts Nida'a Abu Jbara Senior VP - HR and Administration CapM Investments P.O.Box 105447, Abu Dhabi, UAE Tel: +971 2 4477205 Fax: +971 2 4477215 Email: nidaa at capminv.ae Jamal Shirazi National Bank of Abu Dhabi Assistant Manager Phone: +971-2- 6161900 E-mail: jamal.shirazi at nbad.ae Ebrahim Jaffer Union National Bank Senior Investment Relationship officer Phone: +971-2-6984603 E-mail: ebrahim.jaffer at unb.ae Mohamed Wassim Finance House Executive Vice President - Strategic Planning Phone: +971-2-62194444 E-mail: Wassim at fh.ae

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[hasanm]

having seen this company come under formation..i feel disappointed that expatriates like us cannot get hold of the shares...for the initial offering is going to multiply rapidly upon listing

[sharewadi]

The Green Crescent Insurance IPO was oversubscribed by 70x. Looks like it could go the same way as Methaq Insurance (METHAQ) when it floats - from 0-100 mph in 5 secs, or 1-6 dhs in 6 weeks, with no fundamental reason to justify it but hey, that's what it's like in these frontier markets .

A "thundering response" ? Look's like someone's trying to make their mark in the press release department ...

Although non-nationals could not take part in the IPO, they can trade Green Crescent shares once they've listed.

Good luck punters .

Press Release 26 June 2008:

Green Crescent IPO subscribed 70 times over Abu Dhabi based CAPM Investment, the Lead Manager and Financial Advisor to Green Crescent Insurance Company (GCIC) has announced on 24th June 2008 the closing of the public offering of GCIC, which was launched Saturday, June the 14th in the UAE and received a thundering response from investors as the IPO has been oversubscribed by more than 70 times. Commenting on the results of the offering, Yasser Geissah, CEO, CAPM Investment, said: 'The result of the IPO has shaped up according to our expectations demonstrating investors appetite in the region for similar investment opportunities especially with the considerable development in the health insurance sector in the UAE. From our understanding of the UAE market and our long experience in the investment banking industry and IPO management, we expected the success of the Green Crescent IPO and the overwhelming interest from investors to GCIC shares. We would like to thank them for showing trust and faith in Green Crescent.' Commenting on the IPO, Carl Sardegna, CEO, Green Crescent said: 'We are very pleased with the response to our IPO and look forward to beginning operations and generating the results to justify the confidence shown by the investors.' The Company intends to refund excess money before 8th July 2008 and it plans to list Green Crescent on the Abu Dhabi Securities Exchange (ADX) within a month from the date of announcing its incorporation. Upon listing, shares of Green Crescent can be traded among investors from UAE, GCC and foreigners providing that ownership of non-UAE investors do not exceed 25% of the Capital according to GCIC Articles of Association.

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[sharewadi]

Green Crescent Insurance (GCIC) IPO Allotment details:

70x oversubscribed
1.3% allotment proportion
4525 subscribers
15 July 2008 - founding GAM. GCIC website and original documents say 09 or 13 July 2008 - no reason given for new date that I can see but presumably because no quorum? Or was it just a delay?

Listing date unknown

Press Release 08 July 2008:

Green Crescent allotment of shares announced The Founders Committee of Green Crescent Insurance Company (GCIC) have announced the completion of reconciliation of the subscription applications of GCIC and allotment of shares. CAPM Investment, the Financial advisor and Lead manager, has announced that due to the high demand on the GCIC offered shares, the allotment was set to be approximately 1.3% of total subscribed shares. Ernst and Young, the Subscription Auditors, has supervised the allotment process conducted by National Bank of Abu Dhabi (NBAD) (The lead Receiving Bank) on pro rata basis and in accordance with the GCIC prospectus. The receiving banks has started sending the Allotment Notices to the 4525 subscribers, including refund cheques and invitation to the Founding General Assembly that will be held in its on the 15th of July 2008.

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[sharewadi]

Green Crescent listing date 26 March 2009 apparently
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