Middle-east Arab News Opinion | Asharq Al-awsat

Dubai Financial Market IPO Opens | ASHARQ AL-AWSAT English Archive 2005 -2017
Select Page

Dubai, Asharq Al-Awsat- Dubai Financial Market (DFM) said that its initial public offering is now open for subscription. Dubai Government, the founder and main shareholder of DFM,intends to offer AED 1.6 billion (US$ 435 million), representing 20% of the DFM share capital of AED 8 billion, through this IPO. The IPO starts Sunday, November 12, 2006 for 12-day closes on Thursday, November 23, 2006.

The 1.6 billion shares on offer are divided into two offerings, the private offering of 720 million shares and public offering of 880 million shares. The private offering (or preferential allocation) is meant for specified investors and includes the current national employees of the Government of Dubai, employees of Companies owned 100% by Dubai Government, retired nationals from Dubai as well as companies where the Dubai Government owns not less than 99% of its equity. Other segments of the private offering comprise stock brokerages and listed companies, both considered by DFM as an integral part of its huge success since its incorporation,

Essa Kazim, Director General of DFM said: “DFM’s IPO is the first of its kind IPO in the Middle East and we have heralded a new trend. Our lead advisor, Dubai Bank has appointed a record number of 16 receiving banks, in anticipation of strong demand. The best part of this IPO is that every possible class of investor has been taken into account which is a pioneering effort”

“The whole idea is to create and share wealth with Dubai Government employees, locals, our valued partners comprising brokers & listed companies, foreigners, expatriates and institutions, ensuring at the same time fair distribution amongst private & public category investors”, he added.

A statement from the Fatwa committee, headed by Dr. Hussain Hamed Hassan, stated that: “DFM’s decision to become a joint stock company complies with Shari’a rules and principles. Its operations are Shari’a compliant and the Company holds no liabilities and has no investments that contradict with the Shari’a rules and regulations. DFM is allowed to maintain two books of accounts and therefore buying and selling of its shares is Halal”.