Deyaar IPO and prospectus
Deyaar Development PJSC IPO
The Deyaar Development PJSC IPO at AED 3.2 billion is the largest in the UAE as of April 2007. Previously, the largest IPO in the UAE was the Air Arabia IPO at AED 2.67 billion in March 2007. The expected Emirates Post IPO could be a similar size to the Deyaar IPO and may even be larger.
The Deyaar IPO runs from 06-16 May 2007 and is only open to UAE and GCC citizens. The CEO said the reason for ownership limitation was because Deyaar was a property company and foreign ownership of Deyaar shares would conflict with limitations on foreign ownership of property in the UAE.
Deyaar IPO sign up procedure
If you want to sign up for the Deyaar IPO, you need to do a couple of things.
This is not the official Deyaar IPO prospectus. Obtain it from one of the receiving banks. Section highlighting by ShareWadi.com
Deyaar IPO Prospectus
(Under establishment in the Emirate of Dubai, United Arab Emirates)
Notice for the Initial Public Offering of 3,178,000,000 common Shares only to individual and institutional investors that hold the nationality of the UAE or other countries of the GCC, representing 55% of the Company’s share capital at an Offer Price of AED1.00 per Share (with an additional AED0.02 per Share in Offering Costs).
Deyaar Development (under establishment) (the “Company”)
Based in the Emirate of Dubai, Deyaar is a leading local and regional real estate developer and real estate services company. At inception, Deyaar was the property management unit of Dubai Islamic Bank. Deyaar was later established as a private shareholding company on January 6, 2001 and commenced operations on June 1, 2003.
The overall economic growth in the UAE, and Dubai in particular, led to the significant growth in the real estate sector, which was conducive for Deyaar to expand the scope of its property management operations to include property development and investment activities. Deyaar became increasingly involved as a real estate developer, also expanding into complementary business lines such as real estate brokerage, property management, facilities management and rent-to-lease.
Deyaar has completed and is currently developing a number of notable real estate projects, solely or through joint venture partnerships in the UAE and the Middle East region. Deyaar has a geographically balanced portfolio of real estate projects under development and land bank assets for future development, and has significant growth plans to continue expanding into new international markets.
Deyaar’s principal strategy is to develop and sell residential and commercial properties with the aim of maximizing investor returns and simultaneously providing comprehensive services and care to its customers and tenants. Deyaar seeks to capitalize on its current project portfolio as well as its new projects to be developed to establish itself as a leading player in the real estate sector in the region.
In February 2007, the Company’s founders applied to the UAE Ministry of Economy and the Emirates Securities and Commodities Authority to establish Deyaar Development PJSC (a public joint stock company under formation) in accordance with the requirements of the Commercial Companies’ Law in the UAE.
The Founding Shareholders (the “Founders")
The Founders of the Company whose names appear below, have subscribed to 2,600,000,000 Shares, representing 45% of the Company’s share capital, paid for in-kind in the form of shares in Deyaar Development PSC. The total value of the in-kind contribution has been at AED2,600,000,000 and a price of AED1.00 per Share, as reflected in Article 6 of the Memorandum of Association and Article 8 of the Articles of Association.
The Founders Committee
The Founders undertake to complete all the necessary procedures to finalise the incorporation of the Company. To that end, the Founders have appointed a committee comprised of five (5) members to complete the establishment process with the relevant regulatory authorities. The Founders’ Committee is comprised of the following members
Board of Directors
The Company’s Board of Directors will be composed of nine (9) members, to be elected by the General Assembly of Shareholders for a period of three (3) years. The majority of the Directors, in addition to the Chairman, are required to be UAE nationals. As an exception, and as permissible by the Commercial Companies’ Law, the Founders have named the following individuals as Directors of the Company’s first Board of Directors that will serve for a period of three (3) years from the date the Company is incorporated.
The Company is expected to adopt a dividend policy of distributing at least 25% of it’s net income as dividend payments, subject to bank financing, working capital and capital expenditure requirements. Dividend payments will be upon the recommendation of the Company Board of Directors and the approval of the General Assembly of Shareholders.
Dividends (profits) accumulated during the period from January 1, 2007 to the date of incorporation of the Company as announced by the respective regulatory authorities will be distributed by the Company to the Shareholders of Deyaar Development PSC. In the event that the proceeds from Offering Costs exceed the costs of establishing the Company, then the excess will be registered as income in the Company’s register.
Financial Year and First Financial Period
The financial year of the Company will start on the 1st of January and end on 31st of December of each year. The first financial year of the Company will start upon incorporation of the Company and end on 31 December 2008.
The Company expects to retain the services of Ernst & Young as auditors following the establishment of Deyaar Development PJSC. The auditors of Deyaar Development PJSC will be formally appointed at the first Annual General Meeting of the Company.
Summary of the Offering
Summary of Subscription and Allocation Policy
Upon the closing of the Offering, the Offer Shares will be allocated as follows:
Tranche (I): Retail Tranche
Tranche II: High Net Worth Individuals and Institutional Tranche
In accordance with the Council of Ministers’ Resolution number (8) for 2006, the Ministry of Finance and Industry has the right to subscribe for up to 5% of the Offering. The Ministry of Finance will be allocated the full percentage it will subscribe to prior to the allocation of Shares. Accordingly, the Offer Shares available in Tranche (II) will be reduced according to the decision of the Founders’ Committee.
The Offering of the Company’s Shares is open to both UAE national and GCC national individual and institutional investors subject to UAE share ownership restrictions 51% UAE nationals and 49% non-UAE nationals.
The Lead Manager reserves the right to allocate the Offer Shares to guarantee conformity with the provisions of the Commercial Companies’ Law and the Articles of Association.
Subscription and Incorporation Expenses
The Offering Costs are AED0.02 per Offered Share. It is expected that the proceeds from the Offering Costs will cover the costs of establishing the Company. In the event that the costs for establishing the Company exceed the proceeds from the Offering Costs, then the deficit will be registered as an expense in the Company’s register. In the event that the proceeds from Offering Costs exceed the costs of establishing the Company, then the excess will be registered as income in the Company’s register.
Documentation Required by Subscribers
Subscribers shall submit the following documents along with their subscription application:
B. Entity (company or establishment) formed in the UAE or the GCC
True copies of documents must be verified by presentation of the original or by written certification by any of the following; a notary public, embassy, bank, lawyer, or accountant.
All submitted documents must be valid on the Offering Closing Date.
All Subscribers must submit a copy of the DFM Investor No. card, if one is already issued in the subscriber’s name. It is encouraged that subscribers who do not have a DFM Investor Number apply for one prior to submitting the subscription application.
Offering prospectus & subscription application forms will be available at the IPO designated branches of the following receiving banks:
Bank - Contact tel numbers
ADCB 800 2030
Interested investors are required to submit the subscription form at one of IPO designated branches of the above-mentioned receiving banks, during the Offering period.
This is not the official Deyaar IPO prospectus. You should obtain it from one of the receiving banks (see list above).
Disclaimer: ShareWadi.com and DubaiShareTalk.com provide UAE stockmarket related information, but do not offer investment advisory services, or brokerage services. Investing in shares is risky, you can lose some or all of your money and/or other assets. Anything you read on this site should be regarded as the opinion of the author only and is not to be taken as advice to buy, sell, or hold shares and/or other investments. Do not make investment decisions without due diligence and/or professional advice. In particular, do not assume anything you read on this site is correct or accurate. You should make your own investigations to determine if information is accurate and ultimately, you should accept that you and you alone are responsible for any investing decisions you make.
Copyright © ShareWadi.com 2005-2008. Any company names or product names used on this site, discussion forum, and/or communications from anyone associated with this website are the trademarks or registered trademarks of their respective holders.