Emirates NBD Capital is advising three companies that plan to list on the UAE stock exchanges towards the end of this year.
"The IPO will possibly happen at the end of the year or early 2011. It could be both on the Dubai Financial Market and the Abu Dhabi Securities Exchange," Suresh Kumar, Chief Executive of Emirates NBD Capital, told Emirates Business.
This paper first reported in December that the bank received three IPO mandates with a plan to go to market in the second quarter of 2010.
"They got pushed for two reasons. First, we're already close to summer. And second, once many of the challenges this year - carried over from last year - are resolved, I think market conditions and liquidity in the market will improve," Kumar said.
The firm will also launch two funds - Infrastructure Fund and Integrated SME Fund - worth $250 million (Dh918m) each this year. The funds will follow the co-investment model and will allow limited partners to have a bigger say in the investment decision. "We are targeting $250m each for the first closing and draw down $125m each this year," Kumar said.
The capital, he said, will be invested in two domestic/regional infrastructure projects this year and three opportunities in healthcare, food and retail projects.
"$125m will be deployed towards the end of the year or early next year and turn around fairly quickly in two years' time," he said. "The remaining half will not be drawn down until we can line up three or four more investments.
"The investment period for both will be three years from the first closing. We plan to exit after three to five years."
The firm has started to market the funds in the GCC and is looking at marketing them in the Far East, Europe and US this summer.
"We have started marketing in the GCC. During the summer, we will also be pushing other geographies," Kumar said.
"Interest in infrastructure and private equity is highest in the Far East, particularly China. The second area with significant amount of interest is parts of Western Europe, the UK, the US and parts of South America such as Brazil."
By Karen Remo-Listana
© Emirates Business 24/7 2010
