Deyaar’s IPO oversubscribed 14 times on strong investor interest
Staff Report Dubai: Real estate firm Deyaar’s Dh3.178 billion initial public offering (IPO), the largest public issue so far, has been oversubscribed more than 14 times, an e-mailed statement said. The issue, which closed on May 16, attracted over 85,000 subscribers, collecting over Dh45 billion. Shuaa Capital is the lead manager, financial advisor and sole book-runner for Deyaar’s IPO. The preliminary subscription data, subject to final audited figures, indicates that the issue is more than 14 times oversubscribed, with noticeable strong retail and institutional demand. Ministry stake ——————————————————————————– ——————————————————————————– The Ministry of Finance and Industry has decided to subscribe to five per cent of the total number of shares on offer, the maximum percentage permitted under the law. The Ministry will be allocated the full percentage prior to the allocation of shares among the remaining subscribers. “The demand reflects the potential of the real estate sector and the investors’ immense confidence in the company’s ability to deliver exceptional value,” Zack Shahin, chief executive of Deyaar, said in a statement. Rody Yared, Head of Syndicate at Shuaa Capital, said, “The strong demand for the issue, from both retail and institutional investors seems to indicate a reversal in market sentiment.” Refunds and allocations to subscribers in the UAE will commence on May 30, and June 4 for investors who subscribed in the GCC. Profits rise manifold in three years Deyaar has grown phenomenally, with net profits rising from Dh5 million in 2003 to Dh73 million in 2004, Dh141 million in 2005 and Dh412 million in 2006. A wholly owned subsidiary of Dubai Islamic Bank, Deyaar is one of the region’s leading real estate players, with over 17 residential and commercial projects. The company also leads the property management segment.