Damac raises $348m in London share sale

Dubai property developer Damac priced its London offering of Global Depositary Receipts (GDRs) at $12.25 (Dh45) per share on Tuesday, raising $348 million (Dh 1.277 billion) and valuing the company at $2.65 billion (Dh9.72 billion).

The offering size could increase to $400 million if a 15 per cent greenshoe or over-allotment option is exercised, the company said in a bourse filing. Should this option be activated 15 per cent of the company would be listed.

The luxury housing firm initially set a price range of $12.25-17.25 per GDR on November 14, with the aim of raising $500 million, before narrowing the range to $12.25-13.25 and reducing the amount it was looking to raise last week.

A GDR is a certificate that represents a block of shares in a company. GDRs are often issued by firms in emerging market states to allow foreign investors to buy the stock more easily.

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

Follow Emirates 24|7 on Google News.