• Dubai’s Al-Shafar General Contracting considers IPO
  • The US’s Goldman Sachs, Egypt-based EFG Hermes and local Emirates NBD are advising Al-Shafar

Dubai’s Al Shafar General Contracting has selected three banks to advise on a possible initial public offering, according to Reuters.

They are US-based Goldman Sachs, Egypt’s EFG Hermes and local Emirates NBD, it reports.

Al-Shafar is likely to take advantage of new DFM rules allowing a bookbuilding process rather than a fixed price offering. The changes, introduced in April, were intended to make it easier for companies to list, but have had little effect so far. The DFM has not seen any IPOs so far in 2015.

The reforms also included reducing the proportion of shares that had to be floated to 30 per cent. This was originally set at a prohibitively high 55 per cent.

It is not yet clear how many shares Al-Shafar will issue.

Al-Shafar has a solid track record of winning contracts in Dubai and Abu Dhabi. Its most recent award is an AED488m ($133m) contract to build the Union Museum at Dubai’s Union House.

Selected Al-Shafar contracts in the UAE:

  • Al-Habtoor Group’s Waldorf Astoria Palm Jumeirah ($272m)
  • ASGC’s Dubailand: Windsor Residence ($144m)
  • Bloom Properties’ Marina Bloom Development ($191m)
  • Deyaar’s Windsor Manor ($200m)
  • Dubai Holdings’ Bay Square ($460m)
  • Dubai Holding’s Dubai Studio City ($200m)
  • IFA Hotels & Resorts’ Palm Jumeirah: Golden Mile ($354m)

Source: MEED Projects