Al Benaa plans to launch IPO by end of this year

Abu Dhabi: Al Benaa Real Estate Investment plans to launch an initial public offering (IPO) late this year, an official said on Wednesday.

The company was incorporated in June 2006, and its general assembly yesterday approved the first financial statements from the date of incorporation to December 31, 2007.

"We plan to announce the IPO towards the end of this year, and we plan to call for the second 50 per cent of the paid-up capital from the shareholders very soon," Noura Al Nowais, chief executive officer, said on the sidelines of the general assembly meeting.

Al Benaa's authorised capital is Dh100 million, of which Dh50 million is fully paid by the shareholders, who include institutions and high net-worth individuals such as Abu Dhabi Islamic Bank and Shaikh Soroor Bin Mohammad Al Nahyan, according to the chief executive. "We have also entered a strategic partnership with Emcor Facilities Services, part of the Emcor Group, a Fortune 500 company, with a stake of 25 per cent, while their stake is 75 per cent," Al Nowais said.

Client list

Emcor, the holding company, serves about 75 per cent of its fellow Fortune 500 companies, and the client list of its facilities services affiliate in the UAE include Sorouh Real Estate, mashreq, Dubai International Airport, Nakheel, Abu Dhabi Investment Authority, Sama Dubai and Dubai Festival City.

Al Benaa announced that net profit up to December 31, 2007, was Dh16.1 million, including Dh7.5 million from leasing revenues, or 47 per cent of the total; Dh1.2 million from property sales; and Dh3.5 million from revaluation income. The total value of the company's assets amounted to Dh69.3 million.