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27 February 2024

No Nakheel IPO 'in short term'

Nakheel won't list on the markets in the short term but it will eventually. (FILE)

By Staff Writer

Master developer Nakheel yesterday confirmed it is preparing the ground for an initial public offering of its shares, but ruled out an IPO in the short term.

A senior official, reacting to a UK-based newspaper report that US investment bank JP Morgan Chase is working on proposals to float Nakheel shares to raise up to $15bn (Dh55bn), told Emirates Business: "Of course we are not going to launch an IPO in the current financial climate.

"We began preparations on a share issue, among other options, before the financial crisis set in, so that we have multiple options in place to secure funding for future growth of Nakheel. The crisis will end sooner or later, which is when we will examine if an IPO is a good option."

According to the Telegraph, JP Morgan is working on various plans to raise funds for the Dubai World subsidiary, including a dual listing in London and on Nasdaq Dubai.

The developer has a $3.52bn sukuk due in December. Chief Executive Chris O'Donnell said last month Nakheel would study various options, including a share issue, on paying down the sukuk.