Developer Damac to list on Dubai bourse today
Investors can convert global depository receipts (GDRs), currently listed on the London Stock Exchange, into ordinary equity and list them on the Dubai market
Dubai-based property developers, Damac will list shares on the Dubai Financial Market (DFM) today (January 12).
Damac is one of the UAE's most successful companies and it will be in the top 10 of UAE listed companies with a market capitalisation of approximately $3.5bn.
The luxury developer yesterday (January 11) announced that it was offering investors the opportunity to convert its global depository receipts (GDRs), currently listed on the London Stock Exchange [DMC, click for summary], into ordinary equity and list them on the Dubai market.
The move sparked a 6.2% jump in the value of the London stock, which closed at $16.09 per GDR. They were floated in December in London at $12.25 each.
Hussain Sajwani, the founder and executive chairman of Damac, will continue to own approximately 85% of the company.
“This is another key milestone in our history as we offer investors the opportunity to hold Damac shares traded on the DFM,” Sajwani told Gulf News.
“The offer demonstrates our confidence in our home market of Dubai and our commitment to the DFM, which will allow our large domestic investor base to trade our shares on their local market.
“Those investors who choose not to participate in the offer will continue to hold their GDRs, which will remain traded on the LSE. However, the board of Damac and I strongly encourage eligible holders to accept the offer by tendering all of their GDRs in exchange for Damac Shares. We now look forward to joining other prominent Dubai companies on the DFM as we continue to work hard to create value for our investors.”
GDR holders have until September 2 to decide whether to convert their holdings to DFM listed equity. They will be offered 23.0769231 Damac shares per GDR.
The offer is conditional on the Dubai market allowing the conversion to go ahead.