Dubai's DAMAC Properties announced it plans to raise USD500 million by selling global depositary receipts on the London Stock Exchange. DAMAC would be the first major property firm in Dubai to make an initial public offering since national property market went down 60% in 2009. The country is presently recovering from that plunge.
According to the regulatory filing, each GDR will be equivalent to 3 ordinary DAMAC shares. A GDR is a bank certificate issued by another country to represent shares in a foreign company. GDRs provide an easier way for foreign investor to buy the stocks.
The property developer will offer the GDRs from the entities Citigroup and Deutsche Bank. These banks are controlled by the company's executive chairman and founder, Hussain Sajwani. DAMAC's statement said that all the shares will come from Sajwani. However, it did not indicate the percentage and the timing of the shares to be sold.
As of June this year, DAMAC's assets are valued at USD2.3 billion.
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