Abu Dhabi-based Escan Investment and Real Estate Development may become one of the first 2011 property developer in the country to launch an initial public offering by early next year, Emirates 24|7 can reveal.
The company, which launched Al Fanar, a mixed-use development in Fujairah this May, plans to raise between Dh450 million and Dh500 million from the market.
"We already have got the approval and can launch our IPO anytime. However, the market condition had forced us to delay our decision. We expect to hit market early next year," said Saeed Al Mehairie, Company Board Member and Acting Chief Executive Officer .
The company will list its shares on Abu Dhabi Securities Exchange and is in talks with two capital-based banks for lead managing the issue, he added.
In May, Shuaa Capital Chief Executive Sameer Al Ansari, said there was pipeline of 300 companies that want to go public, but that are not encouraged by the market environment.
"We are quite confident this (IPO) will open up the market," Ansari had said.
According to PricewaterhouseCoopers (PwC), the only IPOs in the Gulf this year have been in Saudi Arabia and Qatar, but activity is expected to rebound soon.
Axiom Telecom is reported to be planning an IPO for later this year.
By Parag Deulgaonkar
© Emirates 24|7 2010
