Damac set for IPO launch

Damac Properties is preparing to launch an initial public offering (IPO) of its shares by year-end or early 2009, Emirates Business has learnt.

The developer is planning to list on the Dubai Financial Market (DFM), a person familiar with the deal said. He declined to say how much the company plans to raise or the quantum of shares it will sell.

The funds will be used to finance Damac's projects in Dubai and overseas. Deutsche Bank is lead advisor for the IPO.

Niall McLoughlin, Senior Vice-President of Corporate Communications at Damac Holding, did not confirm or deny whether an IPO is in the works, saying that any "rumours at this time" about a Damac Properties listing are "purely market speculation".

Damac last week announced the launch of its new brand image and logo, which the company said intends to convey "luxury in a more unique context".

One stock analyst said a rebranding "could imply" that an IPO will follow. The company said it has more than 670 million square feet under development in eight countries, including expansions earlier this year into Malaysia and Iraq. It has announced plans to deliver more than 2,300 units in 2008, followed by 7,100 in 2009-10.

When Damac, headed by Hussain Sajwani, lists on DFM, it will join Dubai's Emaar Properties, Deyaar Real Estate Development and Union Properties and Kuwait's Al Mazaya Holding, National Real Estate Company and Grand Real Estate Projects Company.

Middle East IPOs raised $4.72 billion in the second quarter of 2008 compared to $3.9bn in the same period in 2007, Ernst & Young said in a report. Saudi Arabia's Al Inma Bank was the largest, raising $2.8bn, or 60 per cent of the funds raised.

Last week, Dubai-based Emirates Post and Abu Dhabi-based Al Qudra Holding both cited tough market conditions to postpone IPOs earlier planned for this year.