Dubai’s Al Habtoor plans IPO
Dubai, September 5, 2012
Dubai-based Al Habtoor Group is considering an initial public offering (IPO) amid further strengthening the UAE's position in the capital markets and increased inflows from the Euro zone, the company said in a statement.
The statement was issued following a meeting between Al Habtoor Group chairman Khalaf Al Habtoor and the new CEO of Dubai International Financial Centre Authority (DIFCA) Jeffrey Singer.
The group already has a high level of corporate governance and its financial statements are prepared under IFRS and audited by an independent firm, it said.
Al Habtoor said: “The meeting is an encouraging sign that Nasdaq Dubai and the Dubai International Financial Centre (DIFC) acknowledge the importance of family businesses in the UAE. We are the foundation for the future.”
Al Habtoor acknowledged the cultural changes taking place in family businesses and said the region is moving in the right direction of good corporate governance.
He added that the Al Habtoor Group wanted to be a market leader for well-known family businesses going public.
The meeting was attended by Khalaf Al Habtoor; Mohammed Al Habtoor, vice-chairman and CEO, Al Habtoor Group; Paul Rayner, advisor to the chairman, Al Habtoor Group; Sanjeev Agarwala, Director Strategy & Business Development, Al Habtoor Group; Hamed Ali, acting CEO, Nasdaq Dubai; and Navneet Maheshwani, business development manager, Nasdaq Dubai.
The group, which has a 27.5 percent stake in a joint-venture construction firm with Australia's Leighton Group, did not provide further details on the offering but said it was financially prepared to go public.
Earlier this year, it unveiled plans to develop a new $1.33 billion hotel and entertainment complex in Dubai, despite a property collapse that has seen prices plunge from a 2008 peak.
The group expects revenues to rise 15 percent this year in the wake of 10 percent growth between 2010 and 2011. Its revenues mainly come from hotels, car sales and leasing and real estate. – TradeArabia News Service and Reuters