DAMAC raises $348m in London share sale

December 03, 2013 - 10:33:56 am

DUBAI: Dubai property developer DAMAC priced its London offering of Global Depositary Receipts (GDRs) at $12.25 per share on Tuesday, raising $348 million and valuing the company at $2.65 billion.

The offering size could increase to $400 million if a 15 percent greenshoe or over-allotment option is exercised, the company said in a bourse filing. 

Should this option be activated 15 percent of the company would be listed.

The luxury housing firm initially set a price range of $12.25-17.25 per GDR on November 14, with the aim of raising $500 million, before narrowing the range to $12.25-13.25 and reducing the amount it was looking to raise last week.  

A GDR is a certificate that represents a block of shares in a company. 

GDRs are often issued by firms in emerging market states to allow foreign investors to buy the stock more easily.

Citigroup and Deutsche Bank are joint bookrunners for DAMAC's offer, with the investment banking arm of Saudi Arabia's Samba Financial Group and VTB Capital acting as co-lead managers.

London has seen a revival in IPO activity this year as confidence has returned on the back of booming equity markets, with more firms going public there by mid-November than in the same period of any year since 2007, according to Thomson Reuters data.

However, the stock market rally has stalled in recent weeks, and that has affected IPOs.

Italian freight-forwarding company Savino del Bene extended its Milan share sale process on Monday, while Austrian packaging group Constantia Flexibles cancelled a planned stock market debut after investor demand fell short of expectations.

Shares in the last company to have floated in London, Just Retirement, closed on Monday at 2 pounds per share, having never closed above its November 12 initial public offer price of 2.25 pounds. (Reuters)

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