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Tue 11 Aug 2020 12:41 PM

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Azizi Developments says no IPO planned before 2023

Azizi Developments CEO Farhad Azizi said it will raise $300m from sukuk in Q1 2021

Azizi Developments says no IPO planned before 2023

“We will go back and do the sukuk in Q1 2021. We will restart the process,” Azizi told Arabian Business.

Dubai-based real estate developer Azizi Developments said it has no plans to take the company public for at least three years, according to its CEO, Farhad Azizi. 

Two years ago, the company's chairman and founder Mirwais Azizi, said the company was in the process of assessing a possible IPO for the company that he founded back in 2007. 

With Dubai's property market severely impacted by Covid, and an underlying issue with oversupply, Farhad Azizi said the developer will only consider an IPO when the time is right. 

“We want to be ready and have all the preparations done, and go public when it is the right condition to do so. It will not be before 2023-24,” Azizi told Arabian Business.

Azizi now has over 12,000 homes under construction across 54 residential projects in Dubai. Earlier this month, it announced plans to invest AED3.5 billion ($953 million) in development projects across Dubai over the next two to three years.

Sukuk plans

In order to finance the expansion, Azizi said the company will look to raise $300 million from a sukuk - listed on London Stock Exchange - which will help fund the construction of various projects in Dubai, including phase 4 of its Riviera development in Meydan.

“When you raise money in the form of bonds you become half-public. All your books are to be given to the investors and you have to be a rated company. When you do that you are more publicly visible," Azizi said.

“We had put all our plans for sukuk and we were very close to going ahead, if it were not for Covid-19. We even did a road trip and met investors in Singapore, London and Zurich.”

He said that Deutsche Bank has been selected as the lead bank along with Emirates NBD, and ADCB.

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