Shares of national Takaful company Watania opened for the first day of trading on Abu Dhabi Securities Exchange (ADX). The company has officially been listed on ADX under the ticker symbol “Watania” to be traded under the insurance sector.
16 insurance companies have been listed on ADX since its foundation in 2000, with Watania becoming the 17th company to be enlisted within the insurance sector. 67 companies have been enlisted on ADX to date.
Watania’s Initial Public Offering (IPO) of AED82.5 million launched in May this year proved highly successful, being oversubscribed 7-fold to AED 620 million.
Saif Sayah Al Mansouri, Head of Listed Companies Department, Abu Dhabi Securities Exchange, in a press release, said “Watania has met all of ADX’s regulatory criteria to successfully begin trading shares and we look forward to working together towards building the company’s presence in the market and investor confidence in the UAE’s Takaful industry.” Commenting on the increase in enlisted companies, Al Mansouri continued: “It is very encouraging to see more companies choose to trade publicly, thus offering investors more opportunities to diversify their portfolio, spread risk and help boost the stability of the market. New IPOs offer a channel for local and foreign investors to inject capital into the local market and represent an important step towards the realization of ‘Abu Dhabi Vision 2030’. The growing number of companies offering their shares to be publicly traded is a clear vote of confidence for ADX and its adoption of internationally compatible standards and best stock market practices.” Aref Ismail Al Khouri, Chairman of Watania expected this step “to contribute to the success of both parties.” “Watania’s founding shareholders are among Abu Dhabi’s leading institutions across key industries. That coupled with a seasoned management team who possess extensive knowledge and expertise in the Takaful industry makes the company an extremely sound investment option – one that is set to play a positive role in the development of Abu Dhabi by delivering world-class Takaful solutions for the protection of all customers in Abu Dhabi and the UAE,” he said.
Al Khouri continued: “Watania’s main facility has already opened in Abu Dhabi and we are witnessing a very healthy interest in our suite of sharaia’a compliant insurance products. Our team is well positioned to meet the demands of the market. We are keen to continue to build our offering through attracting the best talent in this business with a strong focus on Emiratis who possess a firm understanding of this sector.” The past few years have witnessed a steady growth in the UAE’s Takaful market due to growing demand for sharia’a -compliant insurance products. Watania is the 10th Takaful Company to be listed on local stock markets in the UAE.