DUBAI, 23 April 2007 — Real estate company Deyaar has secured the approval of UAE’s Ministry of Economy to launch its initial public offering IPO slated on May 6-16, 2007, the company said yesterday.
The total size of the offering is AED3.178 billion allocated over 3.178 billion shares, representing 55 percent of the company’s capital. The shares will be offered at a price of AED1.00 per share in addition to 0.02 fils as offering costs.
Subscription will be open to UAE and GCC nationals. SHUAA Capital is the IPO’s lead manager and sole bookrunner, with Millennium Capital as co-lead manager, and Dubai Islamic Bank as lead receiving bank.
Deyaar’s growth has been spectacular with net profits rising from AED5 million in 2003 to AED73 million in 2004, AED141 million in 2005 and AED12 million in 2006.
Commenting on the company’s growth, Dr. Mohammed Khalfan ibn Kharbash, chairman of Deyaar and UAE minister of State of Finance and Industry, said “Deyaar’s success is powered by its highly professional management and capability to tap into the pulse of the market. The company’s commitment to Shariah principles and strong support rendered by its parent, the Dubai Islamic Bank, has played a major role in its progress.”
“Going forward, Deyaar has chalked out a dynamic growth strategy that will place it among the top regional players in the real estate landscape. Deyaar’s IPO will not only give investors an opportunity to participate in its success but also benefit from the stupendous growth in key real estate markets.”
Zack Shahin, chief executive officer, Deyaar, said “in a short span of 3 years, Deyaar has earned the confidence of customers, investors and its shareholders. In doing so, it has constantly exceeded shareholder expectations and achieved return on weighted capital (ROWC) of 55 percent in 2006.”
He further said that “proceeds from the IPO will be used to finance the company’s massive expansion in property development in a series of mega projects in the UAE as well as spearhead its growth in key strategic markets of Saudi Arabia, Qatar, Kazakhstan and India.”
Deyaar, a wholly-owned subsidiary of Dubai Islamic Bank, is one of the region’s leading real estate players, with over 17 residential and commercial projects across the UAE, Turkey and Lebanon.
