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 . 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.
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.”
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 ...
"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? _________________ UAE IPO list | posting guidelines
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.
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.
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. 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.
. Anyway, Damac (