Dubai luxury housing developer Damac Real Estate said on Thursday that it was launching the book-building for an initial public offer of shares in London that would be worth at least half a billion dollars.

Shareholders in Damac expect to sell a minimum of $500 million of Global Depositary Receipts and up to 18.8 percent of the company, plus an over-allotment option representing 15 percent of the base offer, Damac said in a statement.

Each GDR would represent three ordinary shares and Damac set an indicative price range of $12.25-17.25 per GDR, implying a market capitalisation for the company of $2.65-3.74 billion.

It would be the first IPO by a Dubai property developer since the emirate's property market crashed four years ago. - Reuters