Emirates NBD considers IPO of subsidiary

22 September 2015

Electronic payments firm could be listed

  • Dubai’s Emirates NBD may list its electronic payments subsidiary Network International
  • Emirates NBD owns a 51 per cent stake in Network International, while local Abraaj Capital owns 49 per cent

Dubai’s Emirates NBD is considering listing a subsidiary, Network International, it has disclosed to the Dubai Financial Market (DFM).

The electronic payment processing services company has a 70 per cent market share in the UAE.

Emirates NBD emphasised that no decision has been taken on the potential initial public offering. It did not disclose the stake to be sold or whether the company would be listed on the DFM or abroad.

The bank owns 51 per cent of Network International. Local Abraaj Capital purchased a 49 per cent stake in 2010 for AED2bn ($539m).

The DFM has had just one IPO so far in 2015, for local Damac Properties, as the stock market has underperformed due to falling oil prices. Companies considering listing have been discouraged by volatility, which affects valuations.

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