NBAD expects to arrange eight IPOs this year

Abu Dhabi: National Bank of Abu Dhabi (NBAD) expects to manage eight UAE initial public offerings this year, with three looking to raise at least Dh4 billion ($1.1 billion) by the end of June.

"Our reading is we might do eight IPOs this year," Majd Maaitah, senior manager for securities services at NBAD, said.

Three - two from Abu Dhabi and one from Dubai - have the UAE's second-largest bank to help them sell shares, Maaitah said. "Their value could exceed Dh4 billion," he said.

Their businesses include real estate, financial services and education, Maaitah said, declining to be more specific.

Al Nahda International Education Co plans to raise $214 million in an IPO as early as the end of March, according to a list of planned IPOs compiled by Abu Dhabi-based private equity firm Gulf Capital.

Dubai-based Damas Jewellery is looking to raise $272 million before the end of June, according to Gulf Capital.

Maaitah said NBAD will act as one of the banks receiving applications for shares in the planned IPO of Abu Dhabi-based Al Qudra Holding. Qudra said last year the IPO was planned for before the end March.

Banks arranging public offerings in the UAE typically charge two per cent of the amount being raised, which the investors pay, according to Dubai-based Shuaa Capital investment bank.