Damac to list on Dubai bourse on Monday
Dubai's Damac will list on the Dubai Financial Market (DFM) on Monday, a bourse spokesman said, after the developer offered holders of its London-listed global depository receipts (GDRs) shares in its holding company instead.
Damac in December received approval from the UAE’s Securities and Commodities Authority to list on the DFM, according to a filing to the London Stock Exchange.
The developer offered 23.08 shares in its holding company for each GDR held in Damac Real Estate Development Co (DRED) in an offer that closed last Friday.
The holding company - owner of about 86 per cent of DRED, Naeem Brokerage estimates - will now list on the DFM on Monday, a bourse spokesman said. GDR holders own the remainder of DRED.
"We believe that the DFM listing would provide a good boost to Damac's stock profile," Naeem Brokerage wrote in a note.
"In general, it does make financial sense for companies to be listed in markets where they operate, and importantly, the move should help improve the stock's liquidity and attract more retail investors."
Naeem estimates more than 90 per cent of Damac's property handovers will be in Dubai.
"With such high exposure towards Dubai, management cannot afford to ignore local listing, especially given the participation from local/retail investors," Naeem added, giving the stock an accumulate recommendation.
Damac listed in London in December 2013, raising $348 million from the GDR sale. It was the first Dubai property firm to list on the U.K. exchange but joined a number of other UAE companies to go public there.
Damac reported a 166 per cent rise in third-quarter profit in November, on the back of Dubai's buoyant real estate market.
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