Monday, May 30, 2011
Gulf News
Abu Dhabi: UAE-based real estate company Eshraq said yesterday its initial public offering (IPO) of shares was oversubscribed.
The IPO which closed on May 11 received wide interest from companies, public entities and investors from the UAE and the GCC who recognised the valuable investment opportunity that the companys shares hold, Eshraq said in a statement.
Eshraqs IPO was launched earlier this month on 55 per cent of the companys total capital (1.5 billion shares), amounting to 825 million shares with each share having a face value of Dh1. As much as 25 per cent of the value of each share was to be paid upon purchase with the rest to be covered over a period of two years. The IPO was open to UAE and GCC nationals, whether individuals, companies or public entities.
The UAE market is definitely stronger than what it was 12 months ago. The Middle East crisis showed the UAE was a safe haven. The limited number of IPOs within the region shows confidence in companies and investors continue to improve, Tudor Allen, Strategist at AlembicHC told Gulf News by telephone.
We may see a lot more IPO activity after Ramadan as investor appetite increases, Allen added.
The success of the IPO not only reflects the importance of Eshraqs development projects in the region, but it also highlights the recovery process that the real estate market is beginning to witness, said Elias Kawar from the investment banking team at Royal Capital, who managed the IPO.
By Himendra Mohan Kumar, Staff Reporter
Gulf News 2011. All rights reserved.
