15 November 2013
Dubai developer Damac Properties plans to raise around $500m by selling shares on the London Stock Exchange to fund expansion in Dubai.
For sale will be global depositary receipts (GDRs), which are equivalent to three ordinary shares in Damac, a regulatory filing said.
GDRs are typically issues by firms in emerging market states to allow foreign investors to buy the stock more easily.
All the shares in the listing will come from Hussain Sajwani, the executive chairman and founder of the firm, who is selling part of his stake.
Global depositary receipts for Damac are expected to be listed on the London Stock Exchange in December (Wikimedia Commons)
No details on timing or the percentage of the company being sold to investors has been given, though Reuters predicted an early December listing.
Damac wants to take advantage of a recovery in Dubai’s property market after it crashed in 2009 and Mr Sajwani believes the Dubai market is primed for sustainable growth.
If successful the listing would make Damac the first major property firm in Dubai to conduct an initial public offering (IPO) since then.
"We think Dubai is in the beginning of a growth cycle. Demand is now (exceeding) supply, which is why rents are going up," he told Reuters.