Damac seeks $500m in London listing

Dubai luxury housing developer Damac Properties said it plans to raise as much as $500 million from an initial public share offer in London, betting on a recovery in a property market.

Damac is building golf courses in the emirate with American real-estate mogul Donald Trump as well as a Hollywood-themed residential and retail complex.

"We think Dubai is in the beginning of a growth cycle. Demand is now (exceeding) supply, which is why rents are going up," chairman Hussain Sajwani - who will provide all the shares to be sold to investors - said in a call with Reuters.

About 85 percent of Damac's current portfolio is in Dubai, with total assets of $2.3 billion, it said in a stock exchange filing that was the first public disclosure of its earnings.

Its profit in the first half of 2013 was $332 million, up 40 percent on the whole of 2012, while revenue was $631.9 million.

DECEMBER LISTING?

Damac expects to list its shares following marketing and a two-week roadshow, chief financial officer Adil Taqi said on the call, putting it in or around the first week of December.

Roadshows will take place in London, the Gulf and the United States, with meetings also possible in mainland Europe, a banker with knowledge of the deal said, adding the company was targeting emerging market funds and regional investors.

Damac's IPO has been timed to take advantage of bullish equity markets, Sajwani said, and is the latest Gulf firm to look to London instead of its home market for a listing.

Gulf share markets have performed strongly in 2013 - Dubai's bourse is up 80 percent year-to-date.

"Our investor base is diversified for (property) buyers so the investor base will be large for the offering," Sajwani said.

Citigroup and Deutsche Bank are joint bookrunners for Damac's offering, with the investment banking arm of Saudi Arabia's Samba Financial Group and VTB Capital acting as co-lead managers.

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