Damac Real Estate Development on Tuesday raised $348 million from its London share offer by pricing its global depositary receipts, or GDRs, at $12.25 each according to Khaleej Times .
The property developer, which sold 28.39 million shares valuing the firm at $2.65 billion, may offer an additional 15 per cent of the initial public offering, or IPO, by exercising an over-allotment option that could increase the total proceeds to $400 million.
The GDRs are due to start trading on Friday.
“We are proud to have successfully completed our IPO and believe that the strong investor interest in the Damac story is a testament to the platform we have created and the potential of the company,” Hussain Sajwani, executive chairman and chief executive officer of Damac , said in a statement to Khaleej Times.
It was the first share sale by a Dubai property firm since the emirate’s real estate sector came under pressure in the wake of global financial crisis five years back. The company originally aimed at raising $500 million with the sale of GDRs, but the final price was fixed at $12.25 per share at the bottom of the price range.
“We have built our business on a commitment to delivery for our customers. As we welcome our new shareholders on board we look forward to extending this commitment to delivering sustainable, long term value to these shareholders as we continue to execute on our growth strategy,” Sajwani said.
Citigroup  and Deutsche Bank are joint book-runners for Damac’s offering, with the investment banking arm of Saudi Arabia’s Samba Financial Group and VTB Capital acting as co-lead managers.
The property developer, which describes its Akoya project  as the “Beverly Hills of Dubai”, is confident to cash in on a renewed interest in Dubai’s property market aided by an overall recovery in the emirate’s economy.
Damac Properties managing director Ziad El Chaar, in a recent interview with Khaleej Times, expressed full confidence in the Dubai real estate market and said it will sustain the upward trend in the coming years. He said the market should sustain 10-15 per cent growth per annum due to huge demand for quality residential and commercial properties.
The master developer is on track to complete 3,328 units across the region by the end of 2013. It has completed 8,887 units to date and has a further 23,688 units at various stages of progress and planning across the Middle East region.
Damac Properties was established in 2002, as a private, residential, leisure and commercial developer in Dubai and the Middle East. It has expanded into Iraq, Jordan, Lebanon, Qatar and Saudi Arabia in the past decade.