Damac raises $400m through London offering

03 December 2013

Dubai property developer Damac was valued at $2.65bn on London bourse

Dubai-based developer Damac Properties raised $400m through its Global Depositary Receipts offering on the London Stock Exchange (LSE). The company, which was valued at $2.65bn, priced its offering at $12.25 a share.

The US’ Citigroup and Deutsche Bank of Germany are joint bookrunners for the offer, with the investment banking arm of Saudi Arabia’s Samba Financial Group and Moscow-headquartered VTB Capital acting as co-lead managers.

Damac, which has completed more than 8,000 residential units with a total value of $3.1bn since its inception in 2002, has assets worth $2.3bn.

Its share sale marks the first time a UAE property developer chooses to list abroad, which could set a precedent for other companies operating in the UAE’s more volatile sectors.

Dubai property prices have increased 30.6 per cent over the first half of 2013. Anticipation ahead of the Expo 2020 decision accounts for part of that rise.

In total, 42 Middle East and North Africa (Mena) companies are listed on the LSE with a total market capitalisation of £92bn. In the past 10 years, companies in the region have raised close to £6bn in London.

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