Communicating a Rights Issue in Dubai
Our unparalled strategic communications expertise and regional knowledge helped ensure a highly successful rights issue on the Dubai Financial Market.
Takaful Emarat is one of the leading Shariah-compliant insurers and the only exclusive health and life insurer in the United Arab Emirates (UAE).
As part of its capital raising strategy at the end of 2015, it planned to raise AED 50 million, via the first tradeable rights issue for a Takaful insurance company in the UAE, to support its expansion strategy.
Appointed just six weeks before the launch of the rights issue, the first step for our Strategic Communications experts was to meet with senior management to understand both the technicalities of the unique tradeable rights issue and to get a full brief of the key corporate and financial messages that we would use throughout our multi-phased communications strategy.
Due to the tight timeframes involved, we recommended a sustained and multilayered public education initiative, which included broker and investor meetings as well as media relations and broadcast interviews. The key objective was to explain Takaful Emarat’s business strategy and growth potential, as well as the tradable rights issue mechanism itself.
"The FTI financial services team showed significant knowledge of our sector and did a fantastic job in terms of positioning our business both with the media and investors. They were able to drill down into our business and crystalize our core messages from both a financial and corporate perspective. This ability and insight combined with their media contacts, drafting and training capabilities made them the ‘go-to’ adviser for our team."
- Wael al Sharif, CEO, Takaful Emarat
Our suggested communications strategy therefore had three tracks. The first was an aggressive corporate communications push which focused on the UAE’s key English and Arabic media and sought to explain the capabilities and growth potential of Takaful Emarat, as well as its unique positioning as one of only two Takaful insurers approved by the Dubai Health Authority to provide health insurance under Dubai’s Mandatory Health Insurance scheme.
Thanks to our contacts within the local and regional media, we secured a 45 minute interview with the CEO Wael Al Sharif on the leading CNBC Arabia Pan-Arab business progamme Kalam Masool, as well as an in-depth appearance on Dubai TV, for which we had provided full media training. These appearances were a significant success and reached a highly influential audience. They were further supported by an interview with Arabian Business, an important pan-Arabic publication which ran an in-depth 8 page interview and cover feature.
The second strand of our strategy was targeted at investors. We circulated Takaful Emarat’s most recent financial results, which were very strong, to the key business and insurance media and potential investors at the start of the rights issue subscription period. These positive financial messages complemented the corporate messaging and portrayed Takaful Emarat as a well-managed and growing business poised to capitalise on significant market opportunities within the mandatory health insurance space.
The third and final phase of our communications strategy focussed specifically on the rights issue. We met with the DFM team, brokers and investors and published a series of rights issue press releases which supported key phases of the transaction. We also sent ’buy-in’ texts to the DFM’s investor base.
Outcome: Thanks in large part due to our communications strategy, the rights issue was 36% oversubscribed and a great success.
Takaful Emarat raised the full amount which they had sought, securing their capital requirements and underpinning their next stage of expansion.