Eshraq Properties raises $225m through share issue

30 May 2011

UAE real-estate sector shows signs of improving

UAE real-estate company Eshraq Properties has raised $225m through an initial public offering (IPO), which closed 11 May on the Abu Dhabi Securities Market. The company floated 825 million shares at AED1 per share, about 55 per cent of the company’s total capital.

“We are pleased with the success of the IPO launched by Eshraq Properties earlier this month … it also highlights the recovery process that the real-estate market is beginning to witness,” says Elias Kawar, investment banker at Royal Capital, which managed the IPO.

The banks received more than 600 requests for the IPO from GCC individuals and institutions, 70 per cent of the shares were subscribed by companies and 30 per cent by investors.

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