DAMAC IPO

Companies considering an Initial Public Offering (IPO) and/or new listings on UAE markets in Dubai and Abu Dhabi - topics moved to ADSM, DFM, or DIFX forums when relevant.

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DAMAC IPO

Postby sharewadi » Mon 12 Jun 2006 09:31

I heard today on Dubai Eye Radio something about Damac doing an Initial Public Offering (IPO) by 2009. I thought I'd seen occasional comments previously about Damac doing an IPO also.

Company size about AED 50 bn dhs. That's not small :shock: . Not sure if that's assets or expected capitalization. Presumably assets since it's pretty difficult to determine market capitalization until after listing. That would surely make it one of the largest UAE companies by total asset size? Maybe I heard the figure wrong. Apparently they have or are developing significant assets overseas.

Expected to list on DFM.

Date is about 3 years away.
Last edited by sharewadi on Mon 12 Jun 2006 17:19, edited 1 time in total.
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Damac Holding IPO

Postby sharewadi » Mon 12 Jun 2006 17:18

Ok, so here's a bit more information. Looks like that 50 bn dhs figure is correct then. Wow :shock: ...

See also IPOs on Dubai and Abu Dhabi stock markets

7 Days 12 Jun 2006 wrote:Damac plans IPO within three years

UAE property developer, Damac Holding, said it will definitely transform itself into a publicly listed company over the next three years. The company also expects to see the total number of its projects to rise from dhs15 billion, today, to a whopping dhs 50 billion by 2009. This is the first time Damac has publicly commented on its financials.

Speaking exclusively to 7DAYS, Damac chairman, Hussein Sajwani, said the company hoped to list on a Dubai exchange.“In the coming three years we definitely want to go public and get listed. We want to continue to be a premiere, high-end, quality product provider to our customers,” he said.

Sajwani effectively ruled-out any chance of listing the firm on the fledgling Dubai International Financial Exchange (DIFX), despite the fact the firm has embarked on an international level expansion plan. “I favour listing on a Dubai market,” he said. “Dubai Financial Market (DFM) would be my favourite choice, but of course we are waiting for some of the rules and regulations to be amended, which are in the pipeline.”

Damac recently announced projects in Qatar and Abu Dhabi and will formally announce a development in a key area of Beirut in front of the Venezia Hotel. It also hopes to launch a project in Amman, Jordan by August. “We have been surveying markets as far as China and as far as Morocco,” Sajwani said.

“We hope to be in about 12 countries over the next three years, although our plans are for mainly the Middle East or places three or four hours flying distance.”
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Damac Holding Chairman says 55% was 'totally unacceptable'

Postby sharewadi » Fri 31 Aug 2007 21:03

After the news of the law change allowing families to keep majority control, the Damac Chairman had one or two words to say about it. He doesn't beat around the bush does he :shock: ...

IPOs - family companies can keep 70% - new law WAM 29 Aug 07

Gulf News 31 Aug 2007 wrote:"The 55 per cent ceiling was totally unacceptable and was the top barrier to companies going public. A 20 per cent ceiling would have been even better," said Hussain Sajwani, chairman of Damac Holding. He said Damac Holding may now consider launching IPOs for some of its companies.

But now it's just a "may" consider an IPO? What happened to last year's "we definitely want to go public" comment from Mr Sajwani?
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No Damac IPO

Postby sharewadi » Wed 26 Nov 2008 01:14

Damac IPO will be delayed. Well, that won't be a surprise to anyone who has bought a Damac property off-plan ;). Anyway, Damac (DAMAC) won't be the only company to have second thoughts about going public in the current financial turmoil. This was part of a report about Damac 2008 Q3 profits and market report.

[source="Khaleej Times 26 November 2008"]Damac Shelves Expansion and Denies IPO, Merger Plans
By Issac John

DUBAI - Dubai’s largest private real estate developer Damac Properties on Tuesday said it was not the right time to go for an Initial Public Offering (IPO) and that it has shelved plans to expand operations into India, Pakistan, Morocco and Tunisia due to the current market conditions.

“No company should go for an IPO at this time. Future plans for the public issue will depend on the market conditions,” said Hussain Sajwani, Chairman, Damac Holding.

Damac was expected to list on the Dubai Financial Market (DFM) by as early as first quarter 2009 to help fund projects at home and abroad.

...[/source]
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Damac IPO ... maybe

Postby sharewadi » Wed 03 Apr 2013 16:40

News of a Damac IPO ... again. Or news of a rumour or speculation of a Damac IPO.

Anonymous sources = questionable news. No useful comment from Damac so who knows what the story is.

"Reuters 03 April 2013" RPT-Dubai developer Damac plans share listing - sources

Wed Apr 3, 2013 12:11am EDT
(Repeats story originally issued on Tuesday with no changes to text)

By Dinesh Nair and Praveen Menon

DAMAC Properties (DAMAC), a privately-held Dubai developer, is considering listing its shares on the stock market and has approached banks with proposals for advisory roles as it bets on a recovery in the emirate's real estate market.

The developer has submitted requests to a handful of leading international banks, three sources aware of the plan said, speaking on condition of anonymity as the matter is not public.

It would be the first major property firm in the United Arab Emirates to launch an initial public offering (IPO) since the property market collapsed in 2009, after similar plans by family-owned Al Habtoor Group were shelved last year.

An IPO by a big Dubai name would also jolt moribund equity markets in the region. The last listing on the Dubai Financial Market index was in March 2009, while the Abu Dhabi bourse has seen only a couple of minor sales since 2008.

The IPO plan is at an initial stage and it was not clear whether the listing was planned in Dubai or in another international market. No details on the potential valuation for the business was available.

DAMAC said a potential IPO is one of the options considered for the company's future growth but gave no additional details.

"As a company of our size and scope, we are continually looking at all growth possibilities and an IPO is one of these routes," said Niall McLoughlin, senior vice president at DAMAC Properties.

Dubai's property market has recovered gradually in the last one year after a 60 percent plunge in prices as investors fled the emirate following the global financial crisis.

"The Dubai real estate sector is pretty hot right now so they would want to capitalise on that sentiment," said one equity banker, declining to be named as he was not allowed to speak to the media.

"They are one of the biggest developers in Dubai - when you're driving around, you see their billboards everywhere - and the obvious comparison, Emaar Properties (EMAAR), has been doing pretty well recently."

Emaar Properties' shares have risen 36 percent year-to-date on the back of increased revenue from hospitality and retail businesses.

The developer has approached banks, including HSBC, Deutsche Bank, Morgan Stanley and Goldman Sachs, the sources said.

The company is yet to pick an advisor for the proposed float, the sources said.

Led by Hussain Sajwani, DAMAC symbolised the flamboyance in Dubai's property market during the boom years, handing out sports cars and luxury yachts to customers of penthouses and duplex homes.

The developer slowed down during the downturn but returned with new projects as Dubai's real estate market stages a gradual recovery.

DAMAC, formed in 2002, has completed 37 buildings and has another 66 buildings under construction across the Middle East and North Africa region. It recently announced a plan to build a $1 billion development in partnership with Viacom Inc's Paramount Group. (Additional reporting by David French; Editing by Louise Heavens)
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Damac IPO news

Postby sharewadi » Thu 19 Sep 2013 00:47

"Reuters 17 September 2013" Dubai's DAMAC picks Deutsche, Citi for London IPO -sources

DAMAC Properties, a privately held Dubai property developer, has hired Deutsche Bank and Citigroup Inc to help arrange an initial public offer of its shares in London, two banking sources aware of the matter said.

The company had said in April that an IPO was one of the options being considered for the company's future growth, after Reuters reported DAMAC had reached out to banks with proposals for advisory roles.

A spokesman for DAMAC declined to comment on Tuesday, but reiterated that the company was looking at all future growth possibilities. Deutsche Bank declined to comment, while a spokesman for Citigroup in Dubai was not immediately available for comment.

A London listing by DAMAC would make it the first major property firm in Dubai to conduct an IPO since the emirate's property market collapsed in 2009. IPO plans by family-owned Al Habtoor Group were shelved last year.

Dubai's property market is now recovering after a 60 percent plunge in prices, but it will still be a challenge for a real estate firm from the emirate to sell shares in an overseas market, one of the banking sources said.

"It will be a big achievement if they are able to pull off an overseas listing. Dubai's real estate market is recovering but there is still a lot to be done in the sector before they can venture into an overseas market," the source said, speaking on condition of anonymity as the matter is not public.

The source said the fact that the company had resolved its pending issues with the Egyptian government would help it focus more on the IPO. Egypt said in May that it had settled disputes with DAMAC involving projects dating back to the Hosni Mubarak era, before Mubarak was deposed as Egyptian president in 2011.

Led by Hussain Sajwani, DAMAC symbolised the flamboyance of Dubai's property market during the boom years, handing out sports cars and luxury yachts to customers of penthouses and duplex homes. The developer slowed down during the downturn but has now returned with new projects.

DAMAC, formed in 2002, has completed 37 buildings and has another 66 buildings under construction across the Middle East and North Africa. It recently announced a plan to build a $1 billion development in Dubai in partnership with Viacom Inc's Paramount Group.
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Postby mechatronic86 » Thu 19 Sep 2013 00:54

why london and not dubai!? :(
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Damac IPO pricing

Postby sharewadi » Sun 01 Dec 2013 00:22

"Reuters 25 November 2013" London IPO of Dubai's DAMAC 75 pct covered before Tuesday pricing
By Abhinav Ramnarayan

LONDON, Nov 25 (IFR) - The $500 million London initial public offer of shares by Dubai-based DAMAC Real Estate (DAMAC) is 75 percent covered, and the deal is set to price on Tuesday, according to a lead.

The property firm opened roadshows on the IPO on Thursday, Nov. 14, setting a price range of $12.25-17.25 per Global Depositary Receipt.

Proceeds are fixed at $500 million, so the freefloat will range between 15 and 21.7 percent depending on the final price. This values the company at between $2.65 billion and $3.74 billion.

Hussain Sajwani, the full owner of the firm, will sell up to 18.8 percent of the share capital and provide a secondary greenshoe.

A major selling point in the deal is the yield on offer. The pricing range implies a yield based on the 2014 dividend of 9.5 prcent at the top, rising to 13.5 percent if the deal is priced at the bottom.

The deal is scheduled to price on Tuesday so that trading can begin on Wednesday, ahead of the Thanksgiving holiday in the United States.

The company's decision to launch an IPO is an indication of just how far sentiment has changed on Dubai property since the real estate crash of a few years ago.

"Rental prices have continued to grow, so the underlying (property) prices have also grown over the last seven quarters. The decision to launch was grounded in the fundamentals, and the expectation that growth will continue," DAMAC chief financial officer Adil Taqi told IFR when the IPO was first announced.

If successful, the deal will provide encouragement to other Gulf property firms to turn to capital markets. In fact, Abu Dhabi-based Aldar Properties (ALDAR) is currently in the market for an Islamic bond.

Citigroup and Deutsche Bank are joint global co-ordinators and bookrunners on DAMAC. Samba Capital and VTB Capital are co-lead managers.
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Past performace may not indicate the future

Postby sam111sam » Mon 02 Dec 2013 16:17

Past performace may not correctly indicate the future

I think this is a general statement that applies to any company or business. But it may apply here more than others.

Before you make any investment in stock or in property, it is advised to survey the opinion of existing clients. Specially, if you are buying off-plan properties or investing in the company.

In the case of Damac, it won't be hard to find some existing clients or brokers who dealt with the company.

You need to check about the delivery period promised against actual
You need to ask the client about the actual quality vs marketing materials
You need to check the track record in multiple projects
Finally ask the client if he/she would buy again or recommend the developer.

If you take the time to ask the right questions, you can avoid lots of expensive mistake. Never take a decision without checking with few existing cleints

My personal impression is that the financial performance of Damac in the past , may not be easy to repeat in the future.

Customer satisfaction plays a more important role as the world becomes more connected
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Re: Past performace may not indicate the future

Postby skyfall » Mon 02 Dec 2013 17:17

sam111sam wrote:Before you make any investment in stock or in property, it is advised to survey the opinion of existing ...


Sam111sam, I am 100% agree with your advice ...and to confirm that I was a customer of Damac after buying from them an apt at (PALM SPRING) and after they took from me and hundreds of other buyers hundreds of thousands Dirhams(in my case over AED 230000 deposit) .Damac never built this project ,held our money in their account for many years ,never built (Palm Spring )and refused to refund us in full in one go and more than 50 of us took legal action against Damac ,we had to pay expenses to get all our money back.

Their customer service is near zero and will never buy from Damac again.

I do not trust Damac.
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Re: Past performace may not indicate the future

Postby sam111sam » Tue 03 Dec 2013 00:50

skyfall wrote:Sam111sam, I am 100% agree with your advice ...and to confirm that I was a customer of Damac after buying ...


This is not the only story

I'm aware of few others

The question that I would always ask any developer. How many projects were delivered on time, then I go and verify. I would also check about the delayed projects. How long where these delay few months or few years, it make a big difference.

Like any service that you buy, you need to check first with clients who bought this service before.

Any company which has a large percentage of dissatisfied clients, will suffer sooner or later. The fact that their profits are good today may not sustain for long

One thing I learned from a world guru in real estate: He said that you can predict the bubble well in advance, just by looking at off plan selling prices:

When off plan properties approach above 80% of the similar ready ones, you are warned. When the off plan approach 90% of the ready ones, they you should get out quickly. If they approach 100%, then you should leave the whole market not just RE.

I see now lots of off plan properties being marketed at 85% now !
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Re: Past performace may not indicate the future

Postby Cash King » Tue 03 Dec 2013 08:02

sam111sam wrote:When off plan properties approach above 80% of the similar ready ones, you are warned. When the off plan ...


I agree with Sam111sam. But I also think that the mania of 2005- Mid 2008 will not be repeated. Every one has learn a hard lesson- Developer, Investor, Speculator, Lender, Off Plan Buyer,etc

As anticipated that after winning the Expo 2020 the rent will sky rocket. But if they are exorbitant then Dubai will loose the Competitiveness in the region ( GCC) .

I also think that before we jump to any conclusion in 2014 we must see the supply demand equation of ready properties in Dubai & Abu Dhabi.

I still feel that there are still vacant properties in DIFC and Business bay despite the decent RE recovery in 2013.

So lets hope for the best.

Thanks
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Damac IPO price

Postby sharewadi » Wed 04 Dec 2013 22:42

"Bloomberg 03 December 2013" Dubai’s Damac Prices London IPO at $12.25, Bottom of Range
By Zainab Fattah

Damac Real Estate Development Ltd. (DMC) (DAMAC), a Dubai-based property developer, priced its London-listed global depositary receipts at $12.25 each, the bottom of its range, in an initial public offering that values the company at about $2.65 billion.

The offering in London is expected to raise as much as $348 million, the company said in a statement today. Damac had previously set a target of at least $500 million, with an indicative price range of $12.25 to $17.25 per GDR. The GDRs, equal to three ordinary Damac shares, are due to start trading on Dec. 6.

The decision to price the GDRs at the low end of the range indicated that “the interest wasn’t as good as expected and initial trading may show volatility,” said Sanyalaksna Manibhandu, a senior analyst at NBAD Securities LLC. Tracker funds seeking to increase their real estate investments in the United Arab Emirates may see better alternatives in Dubai and Abu Dhabi’s stock markets, Manibhandu said.

Al Firdous Holding and Sahira Co., controlled by Damac Properties Development Co. founder Hussain Sajwani, said they plan to sell as much as 18.8 percent of the new real estate company. The offering, the first for a Dubai-based developer since the sheikhdom’s real estate market crashed in 2008, is testing the appetite of global investors for the city’s recovering property market.

Additional GDRs

Damac may offer an additional 15 percent of the IPO by using what’s known as an over-allotment option, which could increase the proceeds to $400 million. The GDRs will be listed under the symbol DMC.

Stocks of London-listed companies that don’t do business in Europe don’t tend to perform well in the long term, according to Manibhandu, whose firm was ranked third among 48 brokerages by value traded on the Dubai Financial Market in October. As a result, Damac may seek a dual listing in the U.A.E. at some point, he said.

A Damac spokesman, who asked not to be identified in line with company policy, declined to comment.

Citigroup Inc. and Deutsche Bank AG, along with Samba Capital and Investment Management Co. and VTB Capital Plc, are managing the IPO.

http://www.bloomberg.com/news/2013-12-03/dubai-s-damac-prices-london-ipo-at-12-25-bottom-of-its-range.html
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Damac to list on DFM on 12th January

Postby fahadabd » Sat 10 Jan 2015 14:01

Damace, one of the biggest private players is being listed on DFM. No price limits (up or down) on first day of trading, starting from 2nd day of trading, normal limits would apply.

Lets see how this one goes. Any idea on the opening prices?
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Re: Marketwatch 2015Q1 DFM ADX

Postby Sebaie » Sat 10 Jan 2015 14:54

No reference price announced for DAMAC till now

[edit by moderator] Link removed, please read forum guidelines. [/edit]

But how damac will affect on the market on Monday,
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Re: Marketwatch 2015Q1 DFM ADX

Postby nastyrunner » Sat 10 Jan 2015 15:59

Shouldn't it start at AED 1.00?
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Re: Marketwatch 2015Q1 DFM ADX

Postby fahadabd » Sat 10 Jan 2015 17:46

I feel it could be priced in the range of 3-4 AED based on the number of shares (i.e 23) that were offered to Damac share holders in London
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DAMAC IPO

Postby abbaxid » Sun 11 Jan 2015 13:26

Any views on the share price action tomorrow ?
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Re: DAMAC IPO January DFM 2015

Postby sharewadi » Sun 11 Jan 2015 17:19

Please post useful information instead of just a link. And when posting links, post to original source, not secondary sources which repeat the information ...

http://www.damacproperties.com/en/ipo

Although nothing obvious showing for me about the IPO after agreeing to their terms and conditions ...

http://www.damacproperties.com/en/section/damac-properties-ipo

Can't find a copy of prospectus or listing announcement on their website. Perhaps I shouldn't be surprised given that it's Damac.

So back to the link which was posted, and includes links to company information and a prospectus at bottom of page (DAMAC Company Profile, Trading-DAMAC) ...

"Mashreq Securities 11 January 2015" Symbol Name (Arabic): شركة داماك العقارية دبي ش.م.ع
Symbol Name (English): Damac Properties Dubai Co PSC
Trading Symbol: DAMAC
Sector: Real Estate & Construction
ISIN: AED001301012
Listing Date: 12/01/2015
Issued Shares: 5,000,000,000
Reference Price: TBD
Trading Price Limits: No price limits (up or down) on first day of trading, starting from 2nd day of trading, normal limits would apply
Board ID (X-stream): 510
Ownership Limits:
Category, Max Ownership
Locals, 100%
GCC, 100%
Foreigners, 49%

http://www.mashreqsecurities.com/announcements/DAMAC-Properties-listing-announcement.aspx
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Re: DAMAC IPO

Postby Sebaie » Sun 11 Jan 2015 17:28

No body knows
But the market was green today to push more people tomorrow to Dfm market for DAMAC party
Any one knows about DAMAC, is it strong company, good fundamentals
But I know
profit 688.1m US dollar for last 9 months
Total share equity 1,184.3m US dollar
Total Liabilities 3678.5 m US dollar
No of shares 5 b shares
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