Dubai: Damac Real Estate Development has withdrawn its offer to exchange the global depositary receipts (GDRs) for Dubai shares as the developer wanted more time for its listing in Dubai.
Damac intends to launch a new exchange offer on “substantially the same terms as the previous offer,” the company said in its filing to the London Stock Exchange.
The developer was unable to reach an agreement with the UAE Securities and Commodities Authority and the DFM admission is likely “to occur later than it was expected.” The company will launch the new offer shortly, it said.
Damac’s London sale was the first by a Dubai developer since the sheikhdom’s real-estate market crashed in 2008, and tested the appetite of global investors for the city’s recovering property market. The GDRs have climbed almost 60 per cent since the offering priced at the bottom of its target range, according to Bloomberg.
“It’s based on a technical issue, it is something that will happen at a later point in time,” said Saleem Khokhar, head of equities at NBAD’s asset management group. “The local listing would appeal their regional investment community, where interest in real estate stocks remain high,” he said.
The earlier swap ratio was at 23.08 Damac shares for each GDR. Company officials declined to offer any comment on this,
Global Depositary Receipt is a bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches.
