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Dubai Financial Market (DFM) said that its landmark AED 1.6 billion (US$ 435 million) initial public offering (IPO) will close on Thursday (November 23, 2006). Investors can still subscribe during the working hours on Thursday (November 23, 2006). The allocation of shares and excess funds are expected to be returned to investors on December 10, 2006.
Essa Kazim, Director General of DFM, said: “ DFM’s management has provided all necessary information and details to investors during the IPO period. DFM has been responding to all inquiries and provided solutions and consultancy to investors participating in its IPO.”
“We are working towards finalizing all the procedures to make DFM a joint stock company that complies with Shari’a rules and principles. We will expedite this process so that we can list DFM shares on the market, which will be beneficial for all of DFM’s shareholders,” he said.
.DFM shares offered through the IPO are priced at AED 1 (AED One) per share, a kind gesture by H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. The 1.6 billion shares on offer are divided into two offerings: a private offering of 720 million shares and a public offering of 880 million shares.
A preferential share allocation of 720 million shares representing 45% of the 1.6 billion shares as part of the IPO is meant for subscription for employees of the Dubai Government, employees of companies owned by Dubai Government, and retired UAE nationals from Dubai (irrespective of who their employer was prior to retirement). Other segments of the private offering include stock brokerages accredited to the DFM, companies listed on the DFM, and Dubai Government-owned companies where the Dubai Government owns not less than 99% of the equity.
The balance of 880 million shares, representing 55% of the 1.6 billion shares on offer, is meant for subscription for UAE nationals, GCC nationals, foreigners and institutions both within and outside the UAE and the GCC. For UAE nationals, DFM has allocated 200 million shares out 880 million shares for those UAE Nationals who do not qualify under the “Preferential Share Allocation.” DFM has also allocated 680 million shares out 880 million shares to public investors, including GCC Nationals, foreigners and institutions within and outside the UAE and GCC,
DFM is a trusted brand name and is the primary listing venue in the UAE for 44 companies (as of October 31, 2006), six bonds and Sukuks, and 11 mutual funds. DFM provides a gamut of services ranging from listing and trade execution to clearing and settlement, as well as data and information services. DFM has a network of 93 brokers. For the year 2005, DFM’s total revenues stood at AED 1.289 billion and net income stood at AED 1.253 billion.
