Eshraq Properties launches $225m IPO
Abu Dhabi, April 26, 2011
UAE-based real estate company Eshraq plans to launch an initial public offering (IPO) worth Dh825 million ($224.6 million), equivalent to 55 per cent of the company’s total capital, with each share amounting to Dh1.
The IPO, which will be held from May 1 till May 11, is aimed at restructuring the company from a private shareholding entity to a public shareholding company, said a statement.
Twenty-five per cent of the value of each share is to be paid upon purchase and the rest is to be covered over a period of two years. An additional amount of 2 fils per share is to be charged as issuance fees.
“Operating within the UAE, Eshraq Properties has always worked on developing projects in prime locations in Abu Dhabi and Dubai that are known to provide stable, steady profit over the long run,” said Saleh Mohammed Bin Nasrah, chairman, Eshraq Properties.
“We have managed to position ourselves as a leading entity in our field due to the vision of our board members and partners, which are in line with the Abu Dhabi Vision 2030 to develop our emirate and to grow the real estate sector and increase its annual profits,” he added.
Dr Sulaiman Mohammed Al Dhalaan, general manager of branches at Eshraq, said that the company constantly searched for promising investment opportunities reiterating the company’s commitment towards further developing its current projects in Abu Dhabi and Dubai.
Dr Al Dhalaan further expressed future plans of geographical expansion in regional markets.
The National Bank of Abu Dhabi (NBAD) has been mandated as the lead receiving back for the Eshraq IPO. Other banks participating in the initiative include First Gulf Bank, Abu Dhabi Commercial Bank, Union National Bank, Emirates Islamic Bank, and Dubai Islamic Bank. – TradeArabia News Service