[edit] Depa IPO subscription period appears to be extended to 15 April 2008 - Gulf News advertisement [/edit]
Depa United Group, a Dubai based company, is launching an IPO in early 2008 for listing in another country? While there's a choice of three stock exchanges in the UAE? That doesn't say much for the DFM, DIFX, or ADSM.
Although to be fair, it doesn't sound like Depa excluded UAE exchanges but that was the conclusion of the TNI boss, Mr Osmansoy.
Reuters 26 September 2007 wrote:
Dubai's Depa to launch AED 1.5 bn IPO
Dubai's Depa United Group, an interiors contracting company, wants to raise $400 million in an initial public offering next year to fund growth, and list the shares on a foreign exchange, the lead IPO arranger said.
"We are working on a partial sell-down for Depa, which is looking to raise $400 million in an IPO," said Orhan Osmansoy, chief executive of Abu Dhabi-based The National Investor, which also owns 20 percent of Depa.
Depa aims to sell the shares in the first quarter of next year, Osmansoy told Reuters in Abu Dhabi on Tuesday, declining to say which exchanges are being considered for a listing.
Noor Sweid, managing director of Depa, said the interiors contractor was aiming to sell the shares in the first half of next year.
"We're looking to raise the money so we can keep on growing and enter new countries," Sweid said.
The company would also use the funds to finance acquisitions, including of suppliers, Sweid said. She declined to give further details.
Depa last year won a 600 million dirham ($163.4 million) contract to fit out 899 apartments in Burj Dubai, the world's tallest building that Dubai-based Emaar Properties (EMAAR) is building in the family-ruled emirate.
Depa also fits out luxury hotels and yachts, and has offices in Milan, Cairo and Abu Dhabi, according its Web site.
"Businesses like Depa are going outside the UAE for listing purposes because of certain restrictions in the local markets," said Osmansoy.
Depa are planning to list in the UAE after all then, at least according to Noor Sweid, "an official". Was she demoted? She was "Managing Director" according to the September news.
DUBAI/ABU DHABI - Two real estate-related companies in the United Arab Emirates plan initial public offerings next year and a London listing amid renewed interest in UAE IPOs after a change allowing families to retain control.
Depa United Group, a Dubai-based interiors contracting company, aims to raise at least $400m in the first half and list the stock on the Dubai International Financial Exchange (DIFX), and Global Depositary Receipts on the London Stock Exchange to “provide additional liquidity,” Noor Sweid, a Depa United official, said yesterday.
...
“We plan to continue our strategy of the last two years of expansion organically and through acquisition,” said Sweid, whose Depa is considering $500m of takeovers and related purchases during the next few years.
Chief Executive Officer Mohannad Sweid owns 15 per cent of Depa, which fits out luxury hotels and yachts. Last year, it won a $163m contract to fit out apartments in Burj Dubai, the world’s tallest building that the emirate’s Emaar Properties is developing.
The UAE federation, of which Abu Dhabi and Dubai are the two biggest members, in August allowed families to retain as much as 70 per cent of the firms they put up for sale to the public.
The earlier limit of 45 per cent had discouraged UAE families, some of which have built up multi-billion dollar businesses on the back of oil-driven wealth, from selling shares.
...
Dubai-based investment bank Shuaa Capital (SHUAA) is advising Al Qudra on the share sale, Shamsi said, and Morgan Stanley & Co and UBS AG are advising Depa, said Sweid.
Abu Dhabi-based The National Investor (TNI) and Kuwait’s Global Investment House (GLOBAL), both of which have shares in Depa, are also providing financial advice, Sweid said.
Makram Kubeisy, managing director of investment banking at Shuaa, could not immediately be reached for comment. “We are also looking at some Asian markets, like Vietnam and India, where the potential in real estate development is very good,” said Shamsi. “It is a natural trend to go public to get the benefits of a publicly listed company.”
Dubai set up the DIFX in 2005 to operate according to international regulatory standards to encourage local companies to sell shares to the public and for foreign companies to tap the region’s oil-driven wealth.
Gulf Arab initial public offerings fell four per cent in the first nine months to $5.9bn as investor demand declined, especially in Qatar, Kuwait and Bahrain, said a report by Abu Dhabi-based private equity firm Gulf Capital, another shareholder in Depa.
On average, investors offered 6.1 times more — or $1.3bn per sale — than companies were seeking to raise during the nine months to September 30, compared with almost 47 times more in the year-earlier period, Gulf Capital said.
DUBAI - Dubai’s Depa United Group, an interiors contracting company, hopes to raise $500m in an initial public offering in the second quarter of 2008 to fund growth, Al Khaleej newspaper said yesterday, citing the CEO.
The money would be used to fund expansion into new markets and acquire stakes larger than 30 per cent in international interiors contracting companies, the paper quoted Depa Chief Executive Officer Mohannad Sweid as saying.
Sweid did not say how many shares would be sold but said the the IPO would be open to investors of all nationalities. Depa said in October it planned to raise at least $400m by listing shares on the Dubai International Financial Exchange and Global Depositary Receipts in London.
The firm won a Dh600m ($163.4m) contract last year to fit out apartments in Burj Dubai, the world’s tallest building.
Depa is working on four projects in India and five in Morocco and plans to grow its business by 25-29 per cent a year, Sweid told the daily.
News about the Depa IPO was in a KT report about 2 new listings on the DIFX. It reads more like a press release but I haven't seen it anywhere else. The other company mentioned is the Nano Dynamics DIFX listing, which was first reported last week.
Khaleej Times 17 January 2008:
...
Depa United Group, one of the region's interiors contracting company, plans to sell shares in an initial public offering (IPO) in about a month, one of its shareholders said yesterday.
"We're planning to float Depa in about one month," chief executive of Gulf Capital, Karim el-Solh, told Reuters.
Last October, Depa's managing director, Noor Sweid, said that it aims to raise at least $400 million in the first half of 2008 and list the stock on the DIFX as well as Global Depositary Receipts (GDRs) on the London Stock Exchange to "provide additional liquidity."
"We plan to continue our strategy of the last two years of expansion organically and through acquisition," said Sweid, whose Depa is considering $500 million of takeovers and related purchases during the next few years, she told Reuters.
Chief Executive Mohannad Sweid owns 15 per cent of Depa, which fits out luxury hotels and yachts.
Last year, it won Dh597.6 million contract to fit out apartments in Burj Dubai, the world's tallest building.
Its Dh430 million contract-financing deal to help service the contract was one of the largest such deals ever struck in the interior contracting industry.
Dubai International Financial Exchange, the international exchange attached to Dubai's financial district, could host new listings within weeks as Dubai-based interior design firm DEPA and Lebanese firm Future Pipes Industries launch IPOs to raise funds.
Dubai-based DEPA is raising money to expand operations beyond its core markets of the Middle East and north Africa, a region that is developing tourism as a means of diversifying away from oil revenues.
DEPA, which fitted out the interiors of the opulent Burj al-Arab hotel in Dubai and Emirates Palace in Abu Dhabi, is currently fitting out the interiors of Burj Dubai, the world's tallest tower under construction.
The issue, globally coordinated by Morgan Stanley with UBS as joint bookrunner, aims to raise about $500m and could be announced as early as today.
The Depa IPO was indeed announced yesterday, someone called Noor ? was just on Business Breakfast talking about it.
There will be a dual listing - on Dubai International Financial Exchange (DIFX) and London Stock Exchange (LSE).
Mashreq Bank (MASQ) are arranging the IPO. There are other banks with subscription forms I think.
The spokesperson said anyone was eligible to apply for the IPO but then at the end said UAE residents could apply so I don't know now if non-residents are excluded or not. It seems odd to exclude them, if Depa are going to list on the LSE.
I don't know anything about Depa with respect to finances - hopefully their IPO document will provide some information to review.
Dubai - Depa Ltd (DEPA), a Dubai-based interiors contractor, said it aims to raise $400 million in an initial public offering by the end of April in part to finance acquisitions.
"A big part of this money will go towards financing acquisitions in the next two years," Chief Executive Officer Mohannad Sweid told Reuters in Dubai on Wednesday ahead of a meeting with reporters to announce the IPO.
"The close of the sale will be before the end of April ... this will represent 40 percent of the company," Sweid said.
The Depa IPO was launched yesterday - runs from 06-13 April 2008. See the Depa IPO announcement.
Number of shares available: 278.91 million (includes an over-allotment option of 25.36 million shares)
Share price: $1.50 - $1.85 each (on the DIFX)
Global depositary receipts (GDR): $7.50 - $9.25 (for the LSE)
Final share price announced about 5 days after IPO subscription period closes. Depends on a bookbuilding exercise.
Depa IPO shares available to financial institutions, GCC nationals, and UAE residents (which presumably includes expat residents). Looks like non-GCC nationals not resident in the UAE are excluded. So what is the point of the LSE GDRs? _________________ UAE IPO list | posting guidelines
hi there..if the minimum price is going to be $1.50 per share does anyone think that it is way too expensive or am i the only one?
what is your take SW?
good luck to all..
$1.50 per share might be very expensive, or it might be a bargain. More information is needed. Why do you think it's expensive? _________________ UAE IPO list | posting guidelines
Looks reasonably priced to me however I would be reluctant to enter the DIFX market after looking at DP World's performance.
No. of Shares Offered: 278 million (approx) - 41% of total
No. of Shares Total: 680 million (approx)
Profit for 2007: $43.7 million
Share Price: $1.85 (max)
• Estimating shares at 650 mn, trailing EPS is $0.067. Implied PE at 22x-27x
• Organic growth of 30% will bring profits at AED 209m & EPS at $0.087. Forward PE at 17x-22x
• Acquisitions would be EPS accretive & can add 10%-15% value.
• Given the average multiple for emerging market peer group of 15x, I am comfortable subscribing at the lower price of the band: $1.50
I am comfortable subscribing at the lower price of the band: $1.50
Yes, I'd agree with that. Based on average PE in the UAE, growth forecasts for Depa (assuming they're accurate), I'd say $1.50 is pretty fair. I wouldn't expect to make a fortune in a hurry, nor would I be rushing into it if the shares were much more than $1.50.
Apparently Depa has opened an office in Singapore (and elsewhere in Far East) and is poised to get a lot of interiors work. Apparent, Singapore alone will 5,000 hotel rooms in next couple of years...
Depa IPO announces pricing of shares at $1.55 per share
Depa Limited (DEPA), a leading provider of interior contracting services in the Middle East and North Africa, today announces the pricing of shares and global depositary receipts (GDR), each representing five shares, in its initial public offering (IPO) at $1.55 per share and $7.75 per GDR (the Offer Price).
The Offer and allocation have been structured to promote a strong aftermarket performance and ensure a solid base of broad and quality shareholders reflecting strong demand from both institutional and retail investors. Additionally, the structure has ensured the inclusion of interested long-term investors, both regionally and internationally.
Offering highlights
The Offering comprises 253,551,055 ordinary shares in the form of shares and GDRs, each representing five shares. Depa granted Morgan Stanley, UBS Investment Bank, Global Investment House (GLOBAL) and The National Investor an over-allotment option to purchase up to an additional 25,355,106 shares at the Offer Price (the 'Over-Allotment Option').
Based on the Offer Price and the number of shares in issue after the issue of new shares in relation to the Offering, the market capitalisation of the Company, assuming exercise of the Over-Allotment Option, will be over $1bn. Before the exercise of the over-allotment option, gross proceeds from the Offering will be approximately $393m and $432m assuming the Over-Allotment Option is exercised in full. The Offering represents 41% of the enlarged issued share capital of the Company (or approximately 43% if the Over-Allotment Option is exercised in full).
The strong interest in the company from a broad base of high quality international investors generated over five billion dirhams of demand at the Offer. The retail tranche was fully subscribed. Depa implemented a retail subscription process designed on a 'first come first served' basis and structured to eliminate the possibility of oversubscription and to ensure full subscription for the shareholders who were interested in participating.
Depa intends to use the net proceeds it receives pursuant to the Offering to acquire new companies operating in the interior contracting and procurement fields; acquire support manufacturers; establish new joineries and other manufacturing factories in new markets as well as markets in which it already operates; working capital needs; and other general corporate purposes.
The shares are expected to be listed on the Dubai International Financial Exchange (DIFX) (ticker DEPA) and the GDRs are expected to be admitted to the Official List of the UK listing authority and to be admitted for trading on the regulated market for listed securities of the London Stock Exchange plc (LSE) (ticker DEPA and DEPS). It is expected that listing on the DIFX and admission to trading on the LSE will become effective and unconditional dealings will commence on 23 April 2008. Dealings in Depa's shares prior to the listing on the DIFX will not take place. Conditional dealings of the GDRs on the LSE will not take place.
Morgan Stanley is acting as Sole Global Coordinator, Joint Bookrunner and Joint Lead Manager, UBS Investment Bank is acting as Joint Bookrunner and Joint Lead Manager and Global Investment House and The National Investor are acting as Joint Lead Managers.
Commenting on the announcement, Abdullah Al Mazrui, Chairman, Depa, said: 'We are delighted with the response we have received to the offering internationally having had great interest from the leading financial institutions around the world. This level of demand reflects the strength of Depa's management team, exceptional track record and excellent growth prospects.'
Mohannad Sweid, Chief Executive Officer, Depa, added: 'We are extremely pleased to have met our aims of ensuring that the IPO is as inclusive as possible, that we have been able to allocate a meaningful allocation to major investors, as well as promote a healthy and liquid aftermarket. Depa is a market leader operating in a thriving sector and we will continue to focus on generating value for our shareholders by growing organically and further acquiring businesses in new and existing markets that complement our vertical integration strategy.'
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