Interiors firm Depa has unveiled the price range of shares it plans to issue in its initial public offering (IPO), indicating that it could raise up to $516 million (Dh1.8 billion) when it lists on the Dubai International Financial Exchange (DIFX) later this month.
The Dubai-based company plans to sell as many as 278,906,161 million shares at between $1.50 and $1.85 each, and global depositary receipts at between $7.50 and $9.25, it said in a statement on Sunday.
It will be one of the first privately-owned UAE businesses to join the DIFX and will list its GDRs on the London Stock Exchange.
Approximately, 41 per cent of the company will be open to the public.
Depa has opted for a first come first served subscription process to make sure that investors are allocated the shares they apply for until all have been sold.
A first for the Middle East, the process is designed to minimise the costs investors have to bear during the usual IPO subscription process and eliminate potential disappointment of investors waiting to find out whether or not they will receive an allocation of shares.
Investors must choose one of seven fixed subscription tranches – Dh25,000, Dh50,000, Dh75,000, Dh100,000, Dh250,000, Dh500,000 or Dh1 million.
The earliest time for subscription orders to be placed will be on or around April 13, and the announcement of the offer price and allocations is expected to be made on April 18.
The issue is being globally co-ordinated by Morgan Stanley with UBS as joint bookrunner.
The funds raised by the IPO will help finance expansion, including acquisitions and entry into new markets.
The company said it could takeover interior manufacturing firms based in the UAE, as well as expand into India and Morocco.
The share sale is being seen as a major test for the DIFX, as it will be only the third primary listing to embark on the market – after Kingdom Holding and DP World.
Last year, Depa’s income from interior contracts grew by 35 per cent to Dh1.42 million, with a net profit to equity holders increasing by 72 per cent from Dh93 million in 2006 to Dh160m.
It is a leading provider of interior contracting services in the Middle East and North Africa and has fitted-out Burj Al Arab, Emirates Palace in Abu Dhabi plus it has a Dh600m contract to fit out the interiors of Burj Dubai, the world’s tallest building.
$1.5 to $1.85: Depa plans to sell as many as 278,906,161 million shares at between $1.5 and $1.85 each
$7.5 to $9.25: The interiors firm plans to sell global depositary receipts at between $7.5 and $9.25
Depa can raise up to Dh1.86bn with new issue price band