Abu Dhabi-based investment bank The National Investor would sell shares to the public once amendments are made to a UAE law to allow it to maintain a controlling stake, its chief executive said on Monday.

Under current regulations, private businesses in the second largest Arab economy must sell 55 per cent of their shares in an initial public offering, while founding shareholders are compelled to hold on to shares for two years after the offering.

"Yes, when the companies law is changed and we can sell 30 per cent rather than 55 per cent we will look at it," National Investor Chief Executive Orhan Osmansoy told reporters on Monday in response to a question on whether the firm planned an IPO.

President Khalifa bin Zayed al-Nahayan last August approved a legal amendment allowing families to own as much as 70 per cent of their companies when they sell shares in initial public offerings. The law does not apply to private firms or family-owned businesses with more than one shareholder.

"That has been a deal breaker," for many private firms, he said. "What will create a catalyst for the IPO pipeline is to tap into businesses that are owned by one or more families."

A capital increase would help "spruce up" the bank's balance sheet for asset management and private equity," Osmansoy said, adding that an IPO would give its 95 shareholders a way "to monetise on their holdings".

The investment bank is looking to tap the debt markets for as much as Dh400 million ($108.9 million) by year-end.

The National Investor, which won approval to operate in Saudi Arabia in April, would consider acquisitions to enter other markets in the Middle East, he said without being more specific.

"We are on the look out continuously sometimes assets tend to be overpriced," he said.

The bank, which was the lead arranger on the IPO of Dubai-based interior contractor Depa, has about five mandates this year, including issues in the UAE and Oman, Osmansoy said.-Reuters