Deyaar's IPO terms released

DUBAI — Shuaa Capital, released yesterday the terms of the offering for Deyaar's Initial Public Offering (IPO) for Dh3.178 billion offered over 3.178 billion shares..

By A Staff Reporter

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Published: Sun 29 Apr 2007, 9:05 AM

Last updated: Sat 4 Apr 2015, 9:19 PM

The UAE regulators have already granted their approval to launch the IPO on May 6. Subscription to the offering, representing 55 per cent of Deyaar's share capital, will be open to UAE and GCC nationals only. Shares are priced at Dh1.00 per share, in addition to 2 fils (Dh0.02) as offering costs. The IPO is slated to close on the May 16, 2007.

Shuaa Capital is the lead manager, financial advisor, and sole bookrunner for the transaction. Millennium Finance Corporation is co-lead manager, with Dubai Islamic Bank acting as the lead receiving bank, and the National Bank of Abu Dhabi as co-lead receiving bank.

Proceeds from the IPO will be used to finance the company's expansion in property development in a series of projects in the UAE as well as spearhead its growth in key strategic markets of Saudi Arabia, Qatar, Kazakhstan and India.

Karim Schoeib, Senior Vice-President - Investment Banking Group Shuaa Capital, said "Deyaar has exhibited operating efficiency and struck alliances in high-growth markets, the results of which are clearly reflected in Deyaar's cash generation capability and the growth in its earnings. The company's net profit rose from Dh141 million in 2005 to Dh413 million in 2006, a total increase of close to 192 per cent. Deyaar also more than doubled its revenues in 2006 which reached Dh1 billion."

Prospective investors can subscribe through two tranches. The first tranche, for 635.6 million shares, is earmarked for investors who choose to subscribe to a minimum of 10,000 shares and a maximum of 50,000. While the second tranche, for close to 2.6 billion shares, is open to those who subscribe to a minimum of 55,000 shares and above.

Receiving banks and institutions are spread across the UAE and the GCC. In the UAE the receiving banks are: Dubai Islamic Bank; National Bank of Abu Dhabi; Abu Dhabi Commercial Bank; Union National Bank; First Gulf Bank; National Bank of Fujairah; Mashreqbank; Emirates Bank; Dubai Bank; Arab Bank; Finance House; Sharjah Islamic Bank; Dubai Commercial Bank; Commercial Bank International; and Standard Chartered Bank.

Subscribers in the GCC can subscribe through the branches of Standard Chartered Bank in Bahrain, Oman and Qatar.

Refunds and allocations for subscribers in the UAE will commence on May 30, and June 4 for investors who subscribed in the GCC.

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