Dubai residential developer Damac is planning to launch an initial public offering of global depositary receipts on the London Stock Exchange to raise around $500m (£313m).
A GDR is a certificate that represents a block of shares in a company and is commonly used to invest in companies from developing or emerging markets.
The firm, which as of 30 June 2013 had total assets of $2.3bn, said one global depositary receipt represents an interest in three ordinary shares.
If the float goes ahead, Damac will be the first major property firm in Dubai to conduct an IPO since the emirate’s property market crashed in 2009.
The GDRs are being offered by Al Firdous Holding and Sahira Company, each of which are controlled by Hussain Sajwani, the chairman and founder of DAMAC, who is selling part of his stake.
As well as developing in Dubai, Damac is also working on projects in Middle East cities including Abu Dhabi, Riyadh, Jeddah, Beirut, Amman and Baghdad.
For the year ended 31 December 2012, DAMAC had revenue of $692m and profit for the year of $212.1m, and in the six months ended 30 June 2013 achieved revenue of $631.9m and profit for the period of $332m.
Citigroup and Deutsche Bank are acting as joint co-ordinators and bookrunners.
Samba Capital and Investment Management Company and VTB Capital are acting as co-lead managers.
bridget.oconnell@estatesgazette.com
