Damac Properties is preparing to price its London initial public offering near the bottom of its range, three people familiar with the matter said.
The offering was oversubscribed at US$12.25 to $13.25 per global depositary receipt (GDR), the people said, asking not to be identified because the pricing is not public. The company said on November 14 it was targeting a range of $12.25 to $17.25 per GDR, creating a homebuilder valued at as much as $3.7 billion.
Al Firdous Holding and Sahira Holding, controlled by the founder of Damac, Hussain Sajwani, are planning to sell as much as 18.8 per cent of the new real estate company to raise at least $500 million.
The initial public offering is set to test the appetite of global investors for the city’s recovering property market. Damac was valued by analysts at $3.9bn to $5.4bn, three people briefed on the process said on November 4. The company said on November 14 the valuation range would be between $2.7bn and $3.7bn.
Damac has started projects including Hollywood-themed apartment towers and a Trump International golf course in 2013. Damac has assets valued at $2.3bn and reported first-half profit of $332m, up from $212.1m for the whole of 2012.