DAMAC Plans IPO; Citi and Deutsche to Manage the Offering

DAMAC Plans IPO; Citi and Deutsche to Manage the OfferingDAMAC Properties has selected Deutsche Bank and Citigroup to manage the initial public offer of the Dubai based real estate developer. The real estate major plans to increase its market share in Dubai by raising funds from stock market.

DAMAC Properties will list its stock in London Stock Exchange. The real estate market in Dubai suffered a major setback during the economic crisis of 2008-09. The real estate market has recovered in Dubai and the number of deals has gone up. Recently, Dubai and Abu Dhabi reported higher number of sales to overseas investors.

However, market experts feel that it will be little difficult for the Dubai based real estate major to raise funds from London. The markets are certainly looking better but the investor confidence in Dubai based real estate major is not very certain. In year 2011, Emaar Group from Dubai was not able to raise funds from Indian stock market. The company joint venture, Emaar MGF scrapped its IPO plans as the market conditions were not favorable.

Established in 2002, DAMAC properties has 66 building under construction in MENA region and has already completed 37 projects. The company has also resolved the issues with Egyptian government after the Hosni Mubarak regime changed in the country.