Damac moves closer to IPO on London stock exchange

Sources say developer has hired Deutshe Bank and Citigroup to assist

Damac Towers by Paramount is the latest project announced by the developer.
Damac Towers by Paramount is the latest project announced by the developer.

Damac Properties has hired Deutsche Bank and Citigroup Inc to help arrange an initial public offer (IPO) of its shares on the London stock exchange (LSE), two banking sources aware of the matter have told Reuters.

A spokesman for the Dubai-based developer declined to comment, but reiterated that the company was looking at all future growth possibilities.

Deutsche Bank also declined to comment, while a spokesman for Citigroup in Dubai was not immediately available for comment.

The company had said in April that an IPO was one of the options being considered for the company’s future growth, after Reuters reported Damac had reached out to banks with proposals for advisory roles.

A London listing by Damac would make it the first major property firm in Dubai to conduct an IPO since the emirate’s property market collapsed in 2009.

Speaking on condition of anonymity as the matter is not public, a source said: “It will be a big achievement if they are able to pull off an overseas listing. Dubai's real estate market is recovering but there is still a lot to be done in the sector before they can venture into an overseas market.”

The source added the company’s resolution of issues with the Egyptian government would help it focus more on the IPO.

In May, Cairo said that it had settled disputes with Damac involving projects dating back to the Hosni Mubarak era, before Mubarak was deposed as Egyptian president in 2011.

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