The founder and chairman of Danube Group, Rizwan Sajan, said an initial public offering (IPO) is not being considered for his UAE-based building material and property firm, which recorded an annual turnover of $1.4bn in 2016 whilst maintaining 5-6 percent growth.
The Indian billionaire took the Dubai property sector by storm two and a half years ago when he launched a series of eight affordable luxury residential projects under his real estate arm Danube Properties.
Speaking to Arabian Business, he said, “I don’t think I’m going to get that much return if I go public into this market. I haven’t thought about going public right now. People think, ‘Oh if I go public, I’m going to make cash and money and keep it aside.’ But I feel that I would rather want to keep all the money in the business and grow and enjoy my profit rather than cashing it somewhere else.”
Sajan also said one of the reasons he is not considering putting his firm on the stock market is due to Danube's size.
“Our business is a very small family,” he said, referring to the group which is believed to be one of the region’s largest suppliers of building material, offering up to 25,000 products.
He added that the Danube Group is not strapped for cash, further weakening the idea of an IPO.
“At the moment, I am able to do what I want to do without being questioned or asked. If I go public, I would have to answer so many questions," said Sajan.
"Banks have been very good to us, whatever money we want from the banks, they have lent us as much money as we want for expansion and all of that.”
The Danube Group, named after the Danube River in Europe where masses of building materials pass through, comprises a number of segments including Danube Home for home interior and décor solutions, which Sajan said is growing at a staggering rate of 40 percent a year.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.