Dubai, Asharq Al-Awsat- The Founders Committee of Dana Gas, the first regional private-sector natural gas company to offer shares to the public, yesterday issued the results of the its highly successful Initial Public Offering (IPO), which closed last week on the 3rd of October. The issue was over subscribed 140 times collecting a total of Dhs 288 billion, with a record number of subscribers from across the region, confirming the strong appetite for investments in the natural gas industry
The Dh 700 million Retail Tranche, reserved for small investors from GCC countries, saw a record 398,000 applications, with approximately 44% (around 175,000 subscribers) from the UAE, and 56% per cent (around 223,000 applications) from Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. The total amount for this tranche will be divided equally by the number of investors as per the stated allocation policy, indicating an allocation of around 1,750 shares for each subscriber.
The Dh 1.27 billion Wholesale Tranche was 222 times oversubscribed by individual, corporate and institutional investors from a record 101 different nationalities. In line with the stated allocation policy for the IPO, this tranche will be allocated on a pro-rata basis, indicating an allocation per subscription of about 0.45 per cent.
“The Founders Committee would like to thank all those who applied for Dana Gas shares, especially those who travelled long distances and stood in long lines waiting patiently to submit their applications. We are particularly pleased with the strong response and the fact that all GCC nationals were well-represented in the IPO, which in turn demonstrates the truly regional appeal of the Company. This is a strong sign of regional solidarity and confidence in the future of the region’s economy in general, and the natural gas sector in particular. All the shareholders are important to the Company, and Dana Gas will work diligently to maximise value to them, as well as working for the benefit of all the economies and the energy sector of the region”, said the statement by the Founders Committee, which added:
“Because of the large number of applications received at the 105 Receiving Bank branches, it will take some time before the IPO audit is conducted and final allocations are notified. Nevertheless, the Company still intends to meet its 21 day commitment and has instructed all the Receiving Banks to send applicants details of their allocations and refunds of oversubscribed funds by the 24th of October, and subsequently to list the Dana Gas shares on the ADSM as soon as possible prior to the end of this year.”