The privately held property developer DAMAC Properties is contemplating listing its shares in the Dubai bourse. It has approached banks in the region seeking advice on the possible options for the firm.
With many investors in the region seeking new assets both within the region and beyond, an IPO is said to be a good way for a firm to increase its capital base. One analyst though recommends that listings other than banking or properties would be in high demand, as local bourses are already packed with these publicly listed companies.
According to Amer Khan, fund manager at Shuaa Asset Management, "Property prices have picked up and DAMAC has restarted projects (halted after the property bubble burst) so from that perspective, sentiment towards the real estate sector is good. Any IPO in the UAE market would be very positive."
Other possible IPOs in the region include the National Bank of Abu Dhabi and Kuveyt Turk, as finalization of their listing would be completed soon.
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