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Emirates Reit gives indicative share pricing for IPO

Final figure to be decided post the roadshow ending April 2

Gulf News

Dubai: Emirates Reit (real estate investment trust) has given an indicative price range of $1.36 to $1.56 a share ahead of its listing on the Nasdaq Dubai bourse. The eventual selling price will be announced within 48 hours of April 2, which is when the roadshow ends.

That would add up to a market capitalisation of between $3,562 million and $408.6 million from the issuing of 110.29 million shares. There is also a green-shoe option, whereby provision has been made to issue a further 16.54 million shares.

The roadshow and book-building for the stock float started on Sunday (March 23) and will continue until April 2. The price at which the share will be sold will be decided within a “day or two” of the roadshow ending. Listing on the bourse will be done the week after that.

“Shares of Emirates Reit will be made available to a number of institutional and professional investors in certain jurisdictions outside the US,” said a statement issued by the company.

Shuaa Capital has been appointed as Emirates Reit’s sponsor, while the former and Emirates NBD Capital Ltd. are joint book-runners. Abu Dhabi Commercial Bank, Dubai Islamic Bank and EFG Hermes UAE Ltd. are acting as co-lead managers.


Select realty assets

The proceeds will be used to fund the acquisition of select realty assets, some of which have already been “shortlisted”, according to the company. “We have a disciplined acquisition strategy and a shortlist of potential property targets and the proceeds from the proposed offering of shares in Emirates REIT will enable us to move forward with our plans,” said Sylvain Vieujot, executive deputy chairman at Emirates Reit Management (Private) Ltd. “We believe that [the] UAE real estate is an attractive market… and we are keen to capitalise on the investment opportunities within the sector.”

According to Sameer Lakhani, managing director at Global Capital Partners, said: “The Emirates Reit IPO sets the stage for a unique trifecta of advantages in the Middle East. It ushers the way for institutional investors to participate in the lucrative Dubai real estate story and facilitates an infusion of liquidity in the capital markets of Dubai.

“Finally, it allows for the maturation of the real estate market as “hot money” flows increasingly give way to more stable capital in the sector.”

 

IPO highlights

Sharia-compliant Emirates Reit is incorporated as a Dubai International Financial Centre entity.

The share offering totals 110.29 million new shares. There is also an over-allotment arrangement of up to 16.54 million additional shares.

 

IPO highlights

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