Marking a milestone in its aggressive growth, Deyaar, the region’s fastest growing real-estate company, today announced that it has secured the approval of the UAE’s Ministry of Economy to launch its Initial Public Offering (IPO). The issue is slated to open on May 6, 2007 and will close on May 16, 2007.
The total size of the offering is AED 3.178 billion allocated over 3.178 billion shares, representing 55% of the company’s capital. The shares will be offered at a price of AED1.00 per share in addition to 0.02 fils as offering costs.
Subscription will be open to UAE and GCC nationals. SHUAA Capital is the IPO’s Lead Manager and Sole Bookrunner, with Millennium Capital as co-lead manager, and Dubai Islamic Bank as lead receiving bank.
Deyaar’s growth has been spectacular with net profits rising from AED 5 million in 2003 to AED 73 million in 2004, AED 141 million in 2005 and AED 412 million in 2006.
Commenting on the company’s growth, H.E. Dr. Mohammed Khalfan Bin Kharbash, Chairman of Deyaar and UAE Minister of State of Finance and Industry, said, “Deyaar’s success is powered by its highly professional management and capability to tap into the pulse of the market. The company’s commitment to Shariah principles and strong support rendered by its parent, the Dubai Islamic Bank, has played a major role in its progress.
“Deyaar’s growth has been phenomenal, outperforming the surging real estate market. The company has witnessed several milestones, evolving as one of the region’s most prominent real estate players. Going forward, Deyaar has chalked out a dynamic growth strategy that will place it among the top regional players in the real estate landscape. Deyaar’s IPO will not only give investors an opportunity to participate in its success but also benefit from the stupendous growth in key real estate markets.”
Elaborating on the company’s strengths, Zack Shahin, Chief Executive Officer, Deyaar, said, “In a short span of 3 years, Deyaar has earned the confidence of customers, investors and its shareholders. In doing so it has constantly exceeded shareholder expectations and achieved Return on Weighted Capital (ROWC) of 55% in 2006.
“Proceeds from the IPO will be used to finance the company’s massive expansion in property development in a series of mega projects in the UAE as well as spearhead its growth in key strategic markets of Saudi Arabia, Qatar, Kazakhstan and India.”
The real estate industry has fuelled economic growth within the region. Deyaar is strategically positioned at the forefront of this major sector through its track record of successful project deliveries and in-depth understanding of the market.
Deyaar, a wholly owned subsidiary of Dubai Islamic Bank, is one of the region’s leading real estate players, with over 17 residential and commercial projects across the UAE, Turkey and Lebanon. The company also leads the property management segment with approximately 16,000 units in the UAE.
Makram Kubeisy, Managing Director of the Investment Banking Group at SHUAA Capital, said, “Deyaar not only enjoys the advantage of being a company with strong fundamentals and a solid track record with proven profitability, but is well positioned to capitalize on the strength of the real estate sector in the UAE in general and in Dubai in particular, and its projected future performance.”
