Why’s Damac raising $500m in a London IPO and not in Dubai? « ArabianMoney:
"It is not a particularly proud moment for the Dubai Financial Market to have local property developer Damac announce a $500 milliion global depository receipt issue for its stock on the London Stock Exchange rather than its home market.
UAE firms have been choosing London over their local bourses recently with the last two Abu Dhabi-based IPOs also happening in the City. Why is that? What could London offer invesors and sellers of stock over the UAE?
Liquidity and depth
A larger and more liquid pool of capital is the most obvious answer. There are also more specialist emerging markets analysts in London who in theory should be able to provide potential investors with better insight into their likely performance.
Damac can boast assets worth $2.3 billion and a profit of $332 million for the first six months this year, against $212.1 million for the whole of 2012. Gross profit margins have averaged 44 per cent over the past three full years and 64 per cent in the first half of this year. Its forward order book is impressive with tie-ups with Fendi Spa, Paramount Pictures Corp and Donald Trump."
'via Blog this'
No comments:
Post a Comment