Teachers received preferential treatment in the initial public offering (IPO) of Deyaar, the property arm of Dubai Islamic Bank.
Following the AED 3.18bn ($866 million) offering – the Gulf’s fourth-largest ever, which closed at more than fourteen times oversubscribed – it was announced that all teachers that applied received their full allocation of up to 20,000 shares, with anything above that allocated on a pro rata basis.
“We’ve witnessed strong demand from the teachers, following His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s gesture to all national teachers,” said Rody Yared of Shuaa Capital, the sole bookrunner in the offering.
The rest of the allocation, conducted on a pro-rata basis, awarded subscribers in the first tranche of 6.356 million shares a minimum guaranteed allocation of 2000 shares each, plus 57% of the remaining shares applied for.
Those in the second tranche of close to 2.525 billion shares were allocated 4.7% of shares applied for, according to figures released by Shuaa Capital and quoted by WAM.
The UAE Ministry of Finance and Industry exercised its right by subscribing to 5% of the company’s shares, the maximum it is allowed. This was allocated separately and in full.
The WAM report claimes that Deyaar’s recently-concluded IPO was the UAE’s largest-ever, and that it experienced considerable demand from both retail and institutional subscribers.
“We are moving rapidly towards listing on the Dubai Financial Market. As a first step, we have ensured that the allocation of shares and refund of the excess funds have been completed on schedule,” said Zack Shahin, Deyaar Chief Executive Officer in a statement.
The allocations were concluded on 31 May 2007, with refunds commencing on the same day for subscribers in the UAE and June 4 for subscribers across the GCC, according to the WAM statement.
Deyaar acquires, develops, rents and manages real estate in the Gulf, according to its website.
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