Dubai's Damac launches first step in $500m London IPO

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Luxury Dubai developer Damac has launched the book-building process for an initial public offer (IPO) of shares on the London Stock Exchange that would be worth at least $500m.

Shareholders have valued the company at between $2.65bn and $3.74bn, Damac said in a statement on Thursday.

They hope to sell a minimum $500 million of Global Depositary Receipts (GDRs) equalling up to 18.8 percent of the company, as well as an over-allotment option representing 15 percent of the base offer.

A total of 650 million shares are expected to be sold. Damac has set an indicative price range of $12.25-$17.25 per GDR.

The offer will be made only to UK institutional and professional investors and other investors in qualifying geographies.

The book-building process is expected to end about November 26, with the final offer price and the final number of offered GDRs expected to be published the same day.

Trading is expected to begin on November 27.

Damac has launched more than 10 projects this year, including a twin-tower, mixed-use development with Hollywood producer Paramount and Akoya by Damac, a master development centred around a golf course designed by Trump International.

The company’s IPO would be the first by a Dubai property developer since the emirate's property market crashed four years ago.

“This is a milestone transaction for Damac as we continue to build on our track record of delivery in Dubai and elsewhere in the Middle East,” Damac executive chairman and CEO Hussain Sajwani, who founded the company in 2002, said.

“We believe our proven business model, strong margins, solid pipeline of projects and prudent debt free strategy will see us continue to benefit from the sustainable growth that we are seeing in Dubai and elsewhere in the region.”

The offer still is subject to regulatory approvals and market conditions.

Citigroup Global Markets Limited and Deutsche Bank’s London Branch are acting as joint global co-ordinators and joint bookrunners.

Samba Capital and Investment Management Company and VTB Capital are acting as co-lead managers.

* with Reuters

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Little-known investor poised to score big with Twitter IPO

Little-known investor poised to score big with Twitter IPO

New Yorker Suhail Rizvi has quietly amassed a $1bn 15% stake...

Mark Zuckerberg: A billionaire's life

Mark Zuckerberg: A billionaire's life

Arabian Business takes a closer look at the growth of a New Media...

Is Facebook really worth $100bn?

Is Facebook really worth $100bn?

The time has finally come for the internet’s biggest phenomenon...

Most Discussed
  • 17
    Nakheel PR: The toughest job in Dubai?

    You forgot to mention the sewage pit between JLT and Jumeirah Park and the terrible landscaping in Jumeirah Park The chain link fencing they want to install... more

    Monday, 30 March 2015 9:05 AM - An Emaar Fan
  • 14
    Dubai Int'l T1 is too congested, says Indian airline boss

    Question: All you people, criticizing my comment, do you work for Air India by any chance?

    Additionally, for all the whiners, I will provide you... more

    Tuesday, 31 March 2015 12:50 PM - Mosa
  • 9
    Post traumatic stress?

    I once had a Emirates Post employee hang up on me when I asked her to repeat something. That said, the worst is my management company, Kingfield Management... more

    Sunday, 29 March 2015 6:07 PM - Sarah