By Daniel Stanton
NanoDynamics will list next week at US$11 per share.
Details of the first initial public offering (IPO) by a US company on the Dubai International Financial Exchange (DIFX) were announced on Monday.
NanoDynamics, a US-based global alternative energy and clean technology company, is set to become the first American company to trade on the DIFX when the listing is completed next week.
This should boost trading on the exchange, since it is an exclusive listing and anyone wishing to trade shares in NanoDynamics will have to go through the DIFX.
The placement is underway, and it is expected that 50% of the shares will be sold to American institutional investors, with the remaining 50% to be sold to Middle East institutions and high net worth individuals.
The IPO will raise US$100 million through the placement of 9,100,000 shares at a filing price of $11, giving the company a post-IPO market capitalisation of $475m. The indicative range was $10 to $12.50 per share when the IPO was first proposed.
Daman Securities and its US strategic partner Global Crown Capital are co-lead managers of the offering.
Shehab Gargash, CEO of Daman Investments, said: "This is one of a chain of similar IPOs we are working to bring into the DIFX from the US markets."
The alternative energy and nanotechnology space is expected to be a popular sector with regional investors, said Rani Jarkas, CEO of Global Crown Capital.
Jarkas said: "There are many more companies that will be listed in Dubai in that area. It's a very hot sector."
Most of NanoTechnology's business comes from outside the US, with Shell and Tata Chemicals two of its major customers.
Keith Blakely, CEO of NanoDynamics, said in a statement: "We chose the DIFX because of its proximity to our current partners, prospective customers and market opportunities, as well as the attraction of the DIFX as an emerging centre for global finance".