Dubai exchange plans IPO

The Dubai Financial Market (DFM) will be the first Middle-East exchange to envisage an IPO. Notwithstanding the current market environment - the index of DFM has been loosing around 64 percent since the beginning of the year - representatives of the bank syndicate are confident that the operation will succeed. According to Bloomberg the banks estimate that the IPO will be oversubscribed up to 50 times. The subscription period for the shares will end on 23 November 2006. The Dubai government, which is the major shareholder of DFM, will contribute its stake of 20 percent or the equivalent of Dh. 1.6 bln (around $438 million). The suscription price per share will be 1 Dh. (plus a management fee of Dh. 0.03 per share), but suscription will be restricted to government employees, investment banks and companies listed at the DFM. Currently 44 shares, 6 issues and 11 investment funds are traded at the DFM.

Source: Neue Z├╝rcher Zeitung


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