We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 7 Apr 2014 11:29 AM

Font Size

- Aa +

Dubai's Emirates REIT expands IPO due to strong demand

Listing will raise $175m, is already 3.5 times oversubscribed

Dubai's Emirates REIT expands IPO due to strong demand

Dubai-based real estate investment trust Emirates REIT said it had expanded the size of its initial public offer of shares on NASDAQ Dubai, the emirate's first IPO since its financial crisis erupted in 2009, because of strong demand.

Emirates REIT will raise $175m in the IPO, which was 3.5 times oversubscribed, by selling 128.68m new shares, it said in a statement. In addition, up to 19.30m shares will be sold under over-allotment arrangements.

The offer was priced at $1.36 per share, at the bottom of an indicative range of $1.36-1.56. Shares have been sold to a broad base of institutional investors in the United Arab Emirates, the Gulf and Britain, the company said.

The IPO benefited from a strong recovery of Dubai's real estate and equity markets over the past 18 months. The REIT, which manages assets ranging from school buildings to business towers and retail space, had assets worth $333m at the end of last year, up from $213m at the end of 2012.

The offer price and size imply Emirates REIT will have a market capitalisation of $381m and a free float of 46 percent of its shares.

Proceeds of the IPO will primarily be used to fund future acquisition opportunities, while a portion will go towards investment in existing assets, the company said.

The shares will list on NASDAQ Dubai this Tuesday.

Before the IPO, Dubai Islamic Bank owned 30.9 percent of the firm, two units of the Dubai Holding conglomerate owned a combined 27.1 percent, Emirates NBD owned 4.5 percent, Egyptian investment bank EFG-Hermes held 4.2 percent and Dubai property developer Deyaar had 3.4 percent.

Arabian Business: why we're going behind a paywall

Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.