Al Benaa IPO

[sharewadi]

Al Benaa (not Al Beena) is an Abu Dhabi based real estate company. Their website (www.albenaa.ae) says they offer services in the areas of Real Estate Development, Real Estate Investment, and Property Management.

They have 2 projects in their portfolio (according to their website).

Al Benaa Building - a residential building in the Al Nahyan area near Defense Road - still under construction?
Al Qusais Tower - mixed use development in the Al Qusais / Al Ghusais area of Dubai.

Figures for 2007 FY (from report below) are

Net Profit AED 16.1 million
Total Assets AED 69.3 million
Share Capital AED 50 million - but will be up to AED 100 million soon.

Resulting calculations (mine)

Shareholders' Equity at 31 December 2007 - will use share capital figure. That's probably lower than the correct figure but there's no further information that I can see.

Par value of shares = 1 dh (assumed)
Number shares outstanding = 50 million
Return on Assets (ROA) = 16.1 / 69.3 = 23.2%
Return on Equity (ROE) = 32.2% (or 16.1% if AED 100 m used)
EPS for 2007 = 16.1 / 50 = AED 0.322
PE for 2007 at par = 3.1

Overall, an encouraging set of figures with PE looking particularly low (usually UAE IPO shares are sold at par value). Even if you ignore the revaluation component of income, PE is still probably only about 5. Market average for the UAE at present is about 14.

It seems unrealistic to compare Al Benaa figures to other listed property developers (ALDAR) (EMAAR) (RAKPROP) (SOROUH) (UPP), mainly because Al Benaa is so much smaller. But the above figures are generally similar to, or better than ROA and ROE for the other property companies.

No information on whether they plan to list on the Abu Dhabi Securities Market (ADSM) or Dubai Financial Market (DFM), but as it's an Abu Dhabi based company, they would probably list on the ADSM.

See also UAE IPO list.

Gulf News 17 April 2008:

Al Benaa plans to launch IPO by end of this year By Ahmed A. Elewa, Senior Reporter Abu Dhabi: Al Benaa Real Estate Investment plans to launch an initial public offering (IPO) late this year, an official said on Wednesday. The company was incorporated in June 2006, and its general assembly yesterday approved the first financial statements from the date of incorporation to December 31, 2007. "We plan to announce the IPO towards the end of this year, and we plan to call for the second 50 per cent of the paid-up capital from the shareholders very soon," Noura Al Nowais, chief executive officer, said on the sidelines of the general assembly meeting. Al Benaa's authorised capital is Dh100 million, of which Dh50 million is fully paid by the shareholders, who include institutions and high net-worth individuals such as Abu Dhabi Islamic Bank (ADIB) and Shaikh Soroor Bin Mohammad Al Nahyan, according to the chief executive. "We have also entered a strategic partnership with Emcor Facilities Services, part of the Emcor Group, a Fortune 500 company, with a stake of 25 per cent, while their stake is 75 per cent," Al Nowais said. Client list Emcor, the holding company, serves about 75 per cent of its fellow Fortune 500 companies, and the client list of its facilities services affiliate in the UAE include Sorouh Real Estate (SOROUH), mashreq (MASQ), Dubai International Airport, Nakheel (Nakheel), Abu Dhabi Investment Authority (ADIA), Sama Dubai and Dubai Festival City. Al Benaa announced that net profit up to December 31, 2007, was Dh16.1 million, including Dh7.5 million from leasing revenues, or 47 per cent of the total; Dh1.2 million from property sales; and Dh3.5 million from revaluation income. The total value of the company's assets amounted to Dh69.3 million.

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