IPOs for UAE financial markets

IPOs and new listings on Dubai and Abu Dhabi financial markets

On 29 Aug 2007, WAM (the UAE news agency) reported that family run businesses in the UAE could now launch an IPO for a minimum of 30% of their share capital. This means they can keep a majority ownership of 70%. Previous minimum was 55% which meant such companies were reluctant to go for an IPO (Initial Public Offering) since they would lose majority ownership.

• See also the UAE IPO forum, or the topic on Dubai Share Talk: List of UAE IPOs.
• How do I subscribe for an IPO in the UAE? (Information at bottom of this page).
• For some analysis of leveraging costs versus possible returns, see the Dana Gas IPO discussion topic.

Any questions? Visit the Dubai Share Talk UAE IPO forum or Beginners Investment forum.

Possible IPOs - with market (DFM, ADSM, DIFX) if known

Previous IPOs already completed

• Aabar IPO - AED 496 m, 808x oversubscribed (collected AED 400 bn), ADSM listing.
• AGTHIA IPO - Emirates Foodstuff and Mineral Water Company - late 2004, AED 294 million.
• Air Arabia IPO - 18-27 March 2007. 55% of total shareholding floated, AED 2.57 billion, largest in the UAE to date, foreign ownership to 49%. See also Air Arabia IPO discussion. Listed on DFM 17 July 2007.
• Aldar Properties IPO - 450x oversubscribed (collected AED 377 billion), ADSM listing.
• Amlak IPO - Jan 2004, DFM listing Mar 2004, 45% owned by Emaar.
• Arabtec IPO (ATCC IPO) - AED 220m, 14-23 Aug 2004, 65x oversubscribed, DFM listing 04? Jan 2005
• Aramex IPO (Arab International Logistics) - Mar 2005, DFM listing Jul 2005, 550 million shares at 1 dh (55% of total capital).
• Arkan Building Materials IPO May 2006 - AED 858 m, ADSM listing Mon 08 Jan 2007,
• Dana Gas IPO - AED 2.06 bn, ADSM
• Deyaar Development IPO (includes prospectus) - AED 3.2 bn, 55% of total capital, from 06-16 May 2007 (DIB subsidiary). UAE & GCC nationals only. See also Deyaar IPO discussion. Listing on DFM 05 Sep 2007.
• DFM IPO Nov 2006 - AED 1.6 bn, DFM listing on DFM 07 Mar 2007, and DFM expansion plans (Nov 2006).
• DP World IPO (DIFX) - 04-15 November 2007 with DIFX listing on 26 November 2007. Announced 21 October 2007.
• DU IPO (Du Telecom) - DFM listing Sat 22 April 2006, AED 2.4 bn?
• Emaar Economic City IPO (EEC) - listed in Saudi, no listing in the UAE.
• Finance House IPO (FH IPO) - 2004, ADSM listing
• Gulf Navigation IPO - AED 910 m, DFM listing
• RAK Properties IPO - AED 1.1 bn, ADSM listing
• TAMWEEL IPO - Feb 2006, DFM listing 10 Jul 2006 at 2.80 dhs per share.

New listings coming up ... maybe

• Abyaar Real Estate - Kuwait based company may list on DFM in 2008 (has developments in Acacia Avenue in Jumeirah)
• Al Jazeera Steel DFM - secondary listing considered for Dubai - presumably the DFM (primary listing is MSM in Oman)
• Al Mazaya listing on DIFX. Reported May 2006 as listing "soon" but nothing heard since. Already listed on DFM (MAZAYA), and rarely traded. Primary listing on the Kuwait Stock Exchange (KSE).
• Al Salam Bank Bahrain - approved for secondary listing on DFM
• Al Salam Bank Sudan - possibly a secondary listing in the UAE
• Dubai Bank - listing on DFM early 2007? 70:30 ownership by Dubai Holding and Emaar.
• Jazeera Airways (Kuwait) may list on DFM or DIFX - first reported 01 Nov 2006. Jazeera Kuwait listing after IPO in Kuwait with repeated delays.
• NanoDynamics DIFX listing - reported 11 Jan 2008 as later in the year but a few days later said they'd list by the end of Jan 2008. Some IPO confusion (was cancelled in the USA in 2007), eventually they said Nano Dynamics IPO in the UAE Feb 2008. Then it got cancelled.
• NetSol DIFX (NTWK) - secondary listing starts 16 June 2008, primary listing is on the Nasdaq in the USA.
• REIT listings on DIFX - first reported Jun 2006.
• Sunland listing in Dubai - under consideration, reported 06 October 2008
• Swiss Bank and Leichtensteinische Landesbank (LLB) listing on DIFX - reported Oct 2005, nothing heard since.
• Thani Petroleum DIFX listing - possibly in 2009 or 2010 or 2011, or not at all. Reported May 2008.

Other PJSC listings or IPOs

• ADHSC - Abu Dhabi Health Services Company PJSC - announced by WAM 06 Apr 2007, AED 1 billion capital fully paid up and owned by the Abu Dhabi government.
• Al Noor Islamic Bank - subsidiary of Dubai Holding, AED 3.6 billion capital, no IPO mentioned, expected to launch early 2007.
• Al Salam Bank IPO - Bahrain bank with several UAE companies as founders. Secondary listing on DFM.
• Crescent Bank - see Al Hilal Bank (same as Al Hilal Islamic Bank).
• IFA Aviation IPO - will be listed in Kuwait, included here because IFA Aviation is a subsidiary of IFA, a Kuwait company with a secondary listing on DFM.
• Saudi Sagr Insurance IPO - in Saudi Arabia on the Tadawul stock exchange, is a subsidiary of Al Sagr National Insurance Company (ASNIC) listed on the DFM.
• Pakistan firms listing on ADSM and DFM - GN 18 Sep 2006

Glossary

• ADSM - Abu Dhabi Securities Market
• DFM - Dubai Financial Market
• DFSA - Dubai Financial Services Authority
• DIFX - Dubai International Financial Exchange
• ESCA - Emirates Securities and Commodities Authority
• IPO - Initial Public Offering
• KSE - Kuwait Stock Exchange
• PJSC - Public Joint Stock Company
• PSC - Public Stock Company
• SCA - Securities and Commodities Authority (same body as ESCA)

Subscribing for shares in an IPO

To sign up or subscribe for shares in an IPO (Initial Public Offering), you'll need to do two things, in this order, if it's the first time subscribing for an IPO on one of the UAE financial markets. If you already have an investor card from the same market as the IPO company will list on, you just have to go to step 2.

1. Go to the financial market (DFM or ADSM) where the company will be listing after going public, and get an investor number. You can either do this directly, or some of the brokers will do this for you. The new investors page has information about the sign up procedure, and the subscription forms page has a list of forms you need. For a list of brokers, visit the UAE brokers page, and the UAE broker discussion forum for opinions and comments about some brokers.
2. Go to one of the receiving banks and collect the subscription forms. You should also be able to get a prospectus from the receiving bank. Fill in the forms and return them to one of the receiving banks with passport copies, investor card and copies, and any other requested paperwork.

The list of receiving banks should be included in the relevant discussion topic on Dubai Share Talk (see links below). It will be in the IPO prospectus, and probably in a press release or advertisement.

Non-UAE citizens can apply for IPO shares if foreign ownership is allowed (some companies restrict share ownership or sometimes just IPO subscription to UAE or GCC citizens only (e.g. DU Telecom IPO allowed foreginers to buy shares only after they'd listed on the stockmarket, not for the IPO). Usually GCC nationals have the same share ownership rights in the UAE as UAE nationals.

Foreigners without a valid UAE residence visa may be able to apply for IPO shares if foreign ownership is allowed. If it's not clear on the subscription forms, go to a receiving bank and try. Receiving banks may be inconsistent with information so if you are rejected at one, try at a different one.

Notes

• Dubai and Abu Dhabi IPO discussion forum
• IPO, subscription period, date of listing, % of total available for subscription, % available to retail investors, % available to foreign investors, number of times oversubscribed, funds collected, estimated profit from IPO, forecast earnings, DST link.

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This page last updated 22-Dec-2008. E & OE.