Amlak Finance IPO expected raise capital to $204 million
Dubai property finance company Amlak has announced its 2004 growth strategy that combines an Initial Public Offering (IPO) with the conversion of the company into an Islamic financial institution.
Amlak will offer 55 percent or 412,500,000 shares to the public at a price of one Emirati dirham ($27) per share while the existing founding shareholders, Emaar Properties, will retain a 45 percent stake in the company, stated a press release.
The move will result in an increase in the company's capital from Dh 110 million to Dh 750 million and is set to offer United Arab Emirates (UAE) residents and regional investors exposure to the domestic real estate market.
Amlak has had three years of solid growth and a profit increase during 2003 alone of 300 percent reaching Dh 14 million compared to Dh 3.5 million in 2002. During 2003, the company also saw its loan book grow to Dh 1.5 billion with a total ofDh 550 million now disbursed. — (menareport.com)
© 2004 Mena Report (www.menareport.com)