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
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.
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