Abu Dhabi's Eshraq seeks to raise AED825m in IPO

Listing marks the UAE's first initial public offering by a property company since 2007.
Abu Dhabi's Eshraq seeks to raise AED825m in IPO
Eshraq plans to sell a 55 percent stake, on offer from May 1 to May 11 but open only to GCC nationals
By Joanne Bladd
Tue 26 Apr 2011 05:05 PM

Eshraq
Properties, the Abu Dhabi real estate developer, plans to raise AED825m ($225m)
in the Gulf state’s first initial public offering by a property company since
2007.

The
company plans to sell a 55 percent stake, on offer from May 1 to May 11 but
open only to GCC nationals, the developer said Tuesday.

Eshraq
will offer 825 million shares at AED1 each, with an additional charge of 2 fils
per share. The firm will be listed on Abu Dhabi’s ADX General Index

Eshraq
chairman Saleh Mohammed Bin Nasrah, Chairman at Eshraq said he expected the IPO
to be fully subscribed.

“Eshraq
Properties has always worked on developing projects in prime locations in Abu
Dhabi and Dubai that are known to provide stable, steady profit over the long
run,” he said.

Eshraq will be the first UAE developer to list sincee Dubai’s
Deyaar Development in 2007.

The UAE’s property sector was hit hard by the downturn, with
billions of dollars worth of projects put on hold or cancelled amid tumbling
real estate prices.

About 50 percent of Dubai-based real estate projects were
cancelled or suspended after the collapse, the government said last year.

Dubai Investment bank Rasmala said in March property prices
in the Gulf state may drop a further 30 percent as new supply floods the market.

Eshraq’s projects include the AED75bn Marina Rise on Abu
Dhabi’s Al Reem Island. The development will include three residential and four
commercial towers. The company is also building Gateway Towers in Abu Dhabi and
Jumeirah Rise in Dubai.

The developer’s assets were valued at AED1.9bn as of the end
of 2009, according to the IPO prospectus. National Bank of Abu Dhabi was
appointed as lead manager for the share sale.

*With agencies

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