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Abu Dhabi's Al Rayan plans IPO
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Abu Dhabi-based Al Rayan Investment, which invests in real estate and industry in the UAE, said on Wednesday it won shareholder approval to sell stock to the public for the first time to finance expansion. "We have a strong pipeline of interesting projects presently that requires additional capital," Fardan Hasan al-Fardan, chairman of Al Rayan told Reuters after the company's annual general meeting in Abu Dhabi. "We plan to launch the IPO, possibly by the end of 2008 or early 2009," Fardan said. Capm is advising on the IPO. "The percentage of shares that will be offered to the public will depend on the time of the year and the new law that may allow us to offer 30 per cent," Fardan said. The law now requires sale of a 55 per cent stake. Al Rayan profit doubled to 90 million dirhams ($24.51 million) last year and should more than double again this year, Fardan said. Profit in the first quarter is almost already 90 million dirhams, he said. The company is developing real estate projects in Abu Dhabi worth 3.5 billion dirhams, he said. The shares would list on the Abu Dhabi Securities Market. The biggest shareholders of Al Rayan, which has share capital of 411 million dirhams, are Al Ain Sports Club and members of Abu Dhabi's ruling family. (Reuters) |