Nakheel mulls Dh55b IPO |
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Tuesday, Dec 02, 2008
Gulf News
Dubai: NakheelNakheel
, the UAE's biggest developer by project value with nearly Dh294 billion ($80 billion) master-planned developments in the pipeline, appears to consider a Dh55 billion ($15 billion) initial public offering (IPO) to raise capital to fund some projects.
A Bloomberg report on Monday said quoting unnamed bankers that the developer is also is looking for IPO managers.
When contacted, a NakheelNakheel spokesperson neither confirmed nor denied the move, saying, "A company as large as NakheelNakheel is constantly exploring a number of capital raising options, be it traditional debt issues, private equity, real estate investment trusts and direct project financing from banks."
NakheelNakheel, which is developing three iconic palm-shaped islands, on Sunday announced the layoff of 500 employees or 15 per cent of its 3,300 staff.
Analysts said the move its too early for an IPO.
"We know NakheelNakheel needs money. But it's too early for an IPO," investment advisor Raju Menon, managing partner at Morison Menon, told Gulf News.
"This comes at at time when share prices are traded well below the real value of the companies in the UAE. Shares of Emaar, for instance, is traded well below the actual price. So the time is not right yet. They should wait for at least a year."
Meanwhile, NakheelNakheel on Sunday said it is delaying a number of projects, including the one it partnered with US realty tycoon Donald Trump.
"NakheelNakheel is delaying long-dated infrastructure work on some of our projects in order to ensure that our business model is aligned to meet market demand," a NakheelNakheel spokesperson said. "At Palm Jumeirah this means delays to Frond N villas, Gateway Towers and Trump International Hotel and Tower."
© Gulf News 2008. All rights reserved.
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