Dubai’s shares gained the most in a week as a proposed initial public offering from mobile-phone retailer Axiom Telecom LLC, the first such sale from the United Arab Emirates in more than a year, boosted investor confidence. Emaar Properties PJSC, developer of the world’s tallest skyscraper, rose 1.1 percent and Emirates NBD PJSC, the U.A.E.’s biggest bank by assets, advanced to the highest since May 18. The DFM General Index increased 0.9 percent to 1,689.45 at the 2 p.m. close in Dubai, bringing its gain for the week to 2.6 percent.
The IPO news “is positive for the market” and has helped improve investor sentiment, said Mohammed Ali Yasin, chief investment officer at financial services company CAPM Investment PJSC. “The market endured a lousy period where volumes were reaching a low point, there was over-pessimism. IPOs are important for us to recover.”
Companies from the Middle East had delayed share sales because of the global credit crisis. Dubai-based Axiom may sell shares next month and plans to offer 35 percent of its shares, a person familiar with the plan said yesterday. Shuaa Capital PSC, the U.A.E.’s biggest investment bank, is the book-runner for the transaction, said the person, who declined to be identified.
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