Financial professionals expect more initial public offerings on UAE markets over the next few months, with buoyant conditions for capital markets activity extending into 2015.
The new optimism for IPOs – especially on the Dubai Financial Market – comes in the wake of successful market debuts for Marka, the upmarket retail business, and Emaar Malls Group, the owner of The Dubai Mall.
In a recent study, Ernst & Young, the international accounting firm, said: “Expect a rush for fourth quarter returns” in global capital-raising markets, adding that “investor confidence in the Middle East is returning, driven by improving economic conditions, better liquidity and higher valuations. This is being translated into more and higher IPOs.”
There have been more IPOs in the first nine months of 2014 compared to a year earlier, E&Y said, while the amount raised has surged by 53 per cent, to US$3.5 billion. “The most significant deal has been Emaar Malls,” the firm added.
Emaar Malls debuted successfully on the DFM last week, with its shares jumping 21 per cent on opening before easing back to close 12 per cent ahead at Dh3.25. The parent company, Emaar Properties, has said it is also going to float its hospitality business on the DFM within months.
One corporate lawyer, who did not want to be identified, said he was aware of nine IPOs being lined up for market between now and the end of next year’s first quarter.
He said the new enthusiasm among corporates to tap public markets reflected a greater flexibility by the regulators on the rules governing IPOs on the DFM, the renewed attraction of “greenfield” IPOs, and increasing foreign interest in UAE stocks. Emaar Malls attracted big interest from foreign institutions.
A greenfield listing is one in which the company has no trading track record or significant assets, with investors backing the business strategy and reputation of the founders.
Marka, which was heavily oversubscribed and leapt 59 per cent in first-day trading, was the first greenfield for many years, but it has since been followed by Amanat, a healthcare and education start-up run by Dubai-based private equity group Ithmar Capital.
Amanat plans to come to market this month in a flotation that will value it at Dh2.5bn, of which Dh1.375bn will be new money raised in the markets.
Meraas Holding, the property company owned by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, is also planning a DFM listing before the end of the year. It has hired big-hitting advisers like Goldman Sachs, HSBC and Emirates NBD to help complete a sale of up to 40 per debt of its as yet unbuilt parks and resorts business.
Al Habtoor, the family-owned conglomerate big in the property and automotive sectors, is considering plans to revive an IPO plan which could involve it being listed on the DFM early next year.
In the capital, there is also renewed interest in IPOs on the Abu Dhabi Securities Exchange (ADX). Rashed Al Baloushi, the ADX chief executive, said he expected two companies to come to market by the end of the year, with two more also in discussions about listings.
One of these is believed to be Gulf Capital, the private equity firm that earlier this year floated Gulf Marine Services on the London Stock Exchange. Gulf Capital executives are believed to be weighing options as to how much capital to sell down in a possible IPO.
In addition to these planned and potential IPOs, there is also the prospect of a groundbreaking privatisation by a Dubai government-owned company. Mohammed Al Shaibani, chief executive of the emirate’s flagship Investment Corporation of Dubai, said recently he could see the potential for IPOs in “one or two” government-owned subsidiaries.
E&Y said downside risks include geopolitical tensions in the region and the possibility of over-inflated valuations. “Many equity markets around the world are at their highest level since the financial crisis and some market watchers say the IPO boom has recently attracted less mature companies, particularly in hot sectors such as technology and health care,” it added.
fkane@thenational.ae
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Four tips to secure IoT networks
Mohammed Abukhater, vice president at FireEye in the Middle East, said:
- Keep device software up-to-date. Most come with basic operating system, so users should ensure that they always have the latest version
- Besides a strong password, use two-step authentication. There should be a second log-in step like adding a code sent to your mobile number
- Usually smart devices come with many unnecessary features. Users should lock those features that are not required or used frequently
- Always create a different guest network for visitors
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
More on animal trafficking
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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