* Second equity listing in Dubai in five years
* Would give small investors exposure to property market
* New shares would be issued for offer
* Roadshows to start in two weeks
* Assets now valued at about $333 million
(Adds details on portfolio, dividends, background on Dubai
By Mirna Sleiman
DUBAI, March 11 A real estate investment trust,
Emirates REIT, said on Tuesday that it planned to raise at least
500 million dirhams ($135 million) in Dubai's first initial
public offer of shares since 2009.
The company will use proceeds from its IPO on the Nasdaq
Dubai bourse for possible future acquisitions and investment in
existing assets, Abdulla al-Hamli, chairman of its Management
Board, told reporters.
The equity listing would be only the second on either of
Dubai's two stock exchanges since 2009; Bank of London and The
Middle East, Britain's largest stand-alone Islamic
bank, listed its shares on Nasdaq Dubai last October without
raising fresh capital.
Both IPOs and new listings dried up during Dubai's financial
crisis, which erupted in 2009, but stock prices are now soaring
- the main Dubai index is up 153 percent since the end
of 2012 - and several IPOs are in the pipeline, investment
banking sources say.
REITs invest directly in properties and distribute profits
as dividends. Shares in Emirates REIT could attract massive
interest because they would be a way for small investors to gain
exposure to Dubai's red-hot property market, where residential
prices jumped over 20 percent last year and may hit their
pre-crisis peaks next year.
Emirates REIT, which was formed in 2010 as the UAE's first
REIT and complies with Islamic investment principles, appointed
Shuaa Capital and Emirates NBD joint
bookrunners for the IPO.
Karim Schoeib, chief executive for investment banking at
Shuaa, said an investor roadshow for the offer in Gulf Arab
countries and Europe including Britain would start in two weeks.
Current shareholders will not sell their shares in the IPO;
new shares will be issued for the offer. The value of the
company is not known yet and the IPO will be conducted through a
book-building process, officials said. Nasdaq Dubai IPOs usually
sell at least 25 percent of a company.
As of last December, Emirates REIT had 10 properties
comprising 1.2 million square feet of net leasable area; its
total assets were valued at about $333 million, it said. Net
profit climbed to $34.8 million last year from $10.9 million in
2012 and $1.2 million in 2011.
Emirates REIT focuses on properties within Dubai but its
investments may extend to other emirates in the UAE, officials
The fund, which now manages assets ranging from school
buildings to business towers and retail space, distributed
dividends of $5 per share for the 12-month period to Dec. 31,
2012 compared to $2.55 for 2011.
Dubai Islamic Bank currently owns 30.9 percent of
the firm, two units of the Dubai Holding conglomerate
own a combined 27.1 percent, Emirates NBD owns 4.5 percent,
Egyptian investment bank EFG-Hermes has 4.2 percent
and Dubai property developer Deyaar has 3.4 percent.
(Writing by Andrew Torchia)