Surouh Real Estate Company, based in Abu Dhabi, will launch a Dh1.375 billion initial public offering next week, following up on a private subscription of 45 per cent (Dh1.125 billion) of its share capital by a group of founding shareholders.
The shares will be offered at a nominal price of Dh1 plus 1 fils per share as offering costs.
The company expects a massive response from investors to the initial public offering (IPO), said Saeed Bin Eid Al Ghafli, head of Surouh Real Estate Company's founders committee. The National Investor, an investment advisory firm based in Abu Dhabi, and First Gulf Bank, with branches in Ajman, Dubai and Abu Dhabi, are acting as lead managers for the IPO.
"The completion of the collection of the share capital will facilitate the upcoming IPO which has just been scheduled to begin Sunday May 22, and close on Tuesday May 31, covering the remaining 55 per cent of the share capital," Al Ghafli said.
The identities of the private investors who bought 45 per cent of the shares were not released, but financial sources said they were prominent UAE nationals.
"The founding committee has tried its best to maximise the number of founding shareholders in line with the efforts of the government to facilitate the distribution of wealth across a wide stratum of society," Al Ghafli said.
Surouh's first project is its involvement in Al Reem island, off Abu Dhabi. The project's backers envision it as a mixed-used, residential/commercial/recreational development.
