Share subscription is due to close on 8 November for the initial public offering (IPO) in Abu Dhabi-based ADDAR Properties, which is expected to take over ADDAR Real Estate Services. The offering, which is open to UAE nationals and fully-owned local institutions and companies, covers 55 per cent - equivalent to AED 825 million ($225 million) - of ADDAR's total capital of AED 1,500 million ($409 million). The remaining 45 per cent is held by 394 founders.
Minimum subscription in the IPO has been set at 10,000 shares, which are priced at AED 1 ($0.27) each, plus a AED 0.01 ($0.003) offering charge. In the event of oversubscription, shares will be allocated on a pro-rata basis. The joint lead managers on the issue are The National Investorand Abu Dhabi Investment Company (ADIC). The offering is expected to solicit a strong response, given the high level of liquidity in the local market and current appetite for IPOs. The last major IPO in Dubai-based Arabian Technical Construction Company (ATCC)was 65 times over-subscribed. ADDAR Real Estate Services' shareholders are Mubadala Development, Abu Dhabi National Hotels Company, The National Corporation for Tourism & Hotels, ADIC and The National Investor. The company is planning several new real estate projects, including the redevelopment of Abu Dhabi's central market. Several other IPOs are planned in the UAE before the end of the year. These include offerings in Damas Jewelleryand Aramex.
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