Eshraq, the Abu Dhabi property developer, has already received enough interest to sell the shares it plans to list next month, the head of the lead receiving bank says.
"The level of interest we've had from investors means the IPO [initial public offering] will be fully covered," said Majd Maaitah, the director of securities services at the National Bank of Abu Dhabi.
Last week, Eshraq announced plans to raise Dh825 million (US$224.6m) in an IPO scheduled for this Sunday, which would make it the first UAE company outside of the insurance sector to test the public market in two years.
The developer will sell 55 per cent of the company in the offering, with shares initially priced at Dh1.
Eshraq was formed in 2006 by a collection of investors from Saudi Arabia and the UAE. It has three projects in the preliminary stages of development: Marina Rise on Reem Island; the Gateway development on Zayed Bay in Abu Dhabi; and Jumeirah Rise in Dubai.
Eshraq's main activity in recent years has been selling land. The company has sold 19 of the 21 plots it owned on Reem Island, officials said yesterday.
In its prospectus, a copy of which has been seen by The National, Eshraq reports a profit of Dh349m in 2008 and Dh109m in 2009, mainly from land sales.
A projected income statement, based on a study last year, forecasts a net profit of Dh826m for next year based on revenue "from the properties sold on the expected handover date", primarily in Marina Rise. The projected net profit falls to Dh103m in 2013, according to the statement.
The company expects to use money from the IPO to start construction in the next few weeks on Marina Rise, two towers on Reem Island.
"The area is having difficulty but it doesn't mean there is no money," Saleh Mohammed bin Nasrah, the chairman of Eshraq, said yesterday. "Many investors are looking for opportunities."
Eshraq's target of Dh825m would value the company at Dh1.5 billion.
It is taking the unusual approach of allowing investors to buy shares for a 25 per cent down payment, plus a fee of .02 fils a share. The balance will be due within two years, at the direction of the company's board of directors.
"Real estate companies need money over time, they don't necessarily need it from day one," said Elias Kawar, an investment banker with Royal Capital, the lead manager of the IPO. "It is prudent to call in capital when it is needed."
In essence, the company is selling property before construction, said Chet Riley, an analyst with Nomura Securities.
"They are replicating the off-plan model in the capital market structure," Mr Riley said. "But there is a collection risk. That's why the off-plan market fell down."
The subscription is open only to GCC and UAE nationals because of restrictions on non-citizens owning land in the UAE, company officials said.
Most of the interest has come from institutional investors, Mr Maaitah said.
In 2007, Eshraq announced a $272m private stock offering managed by Abu Dhabi Islamic Bank. At the same time it announced plans for Marina Rise, which was originally described as a Dh7.5bn development covering more than 90,000 hectares.
The company also expects to explore projects in Sharjah and Saudi Arabia.
Eshraq's IPO is the third in Abu Dhabi this year after the insurance companies Wataniya and Insurance House tapped into the market. All three have been relatively small in size.
"We all agreed that there is a need for small IPOs. We don't have space for the billions [of dirhams]," Mr Maaitah said.
NBAD has been involved in the IPOs of all three companies.
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The specs
Engine: 3.0-litre six-cylinder MHEV
Power: 360bhp
Torque: 500Nm
Transmission: eight-speed automatic
Price: from Dh282,870
On sale: now
Match info
Australia 580
Pakistan 240 and 335
Result: Australia win by an innings and five runs
BLACKBERRY
Director: Matt Johnson
Stars: Jay Baruchel, Glenn Howerton, Matt Johnson
Rating: 4/5
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90+4')
Red card: Rodrigo Bentancur (Juventus)
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
if you go
The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.
The trip
Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.
Top tips
Create and maintain a strong bond between yourself and your child, through sensitivity, responsiveness, touch, talk and play. “The bond you have with your kids is the blueprint for the relationships they will have later on in life,” says Dr Sarah Rasmi, a psychologist.
Set a good example. Practise what you preach, so if you want to raise kind children, they need to see you being kind and hear you explaining to them what kindness is. So, “narrate your behaviour”.
Praise the positive rather than focusing on the negative. Catch them when they’re being good and acknowledge it.
Show empathy towards your child’s needs as well as your own. Take care of yourself so that you can be calm, loving and respectful, rather than angry and frustrated.
Be open to communication, goal-setting and problem-solving, says Dr Thoraiya Kanafani. “It is important to recognise that there is a fine line between positive parenting and becoming parents who overanalyse their children and provide more emotional context than what is in the child’s emotional development to understand.”
US federal gun reform since Sandy Hook
- April 17, 2013: A bipartisan-drafted bill to expand background checks and ban assault weapons fails in the Senate.
- July 2015: Bill to require background checks for all gun sales is introduced in House of Representatives. It is not brought to a vote.
- June 12, 2016: Orlando shooting. Barack Obama calls on Congress to renew law prohibiting sale of assault-style weapons and high-capacity magazines.
- October 1, 2017: Las Vegas shooting. US lawmakers call for banning bump-fire stocks, and some renew call for assault weapons ban.
- February 14, 2018: Seventeen pupils are killed and 17 are wounded during a mass shooting in Parkland, Florida.
- December 18, 2018: Donald Trump announces a ban on bump-fire stocks.
- August 2019: US House passes law expanding background checks. It is not brought to a vote in the Senate.
- April 11, 2022: Joe Biden announces measures to crack down on hard-to-trace 'ghost guns'.
- May 24, 2022: Nineteen children and two teachers are killed at an elementary school in Uvalde, Texas.
- June 25, 2022: Joe Biden signs into law the first federal gun-control bill in decades.
The Specs
Engine 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp (542bhp in GTS model)
Torque: 730Nm
Price: Dh649,000 (Dh549,000 for GTS)
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
Bio
Age: 25
Town: Al Diqdaqah – Ras Al Khaimah
Education: Bachelors degree in mechanical engineering
Favourite colour: White
Favourite place in the UAE: Downtown Dubai
Favourite book: A Life in Administration by Ghazi Al Gosaibi.
First owned baking book: How to Be a Domestic Goddess by Nigella Lawson.
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
Sri Lanka v England
First Test, at Galle
England won by 211
Second Test, at Kandy
England won by 57 runs
Third Test, at Colombo
From Nov 23-27
Ant-Man and the Wasp
Director: Peyton Reed
Starring: Paul Rudd, Evangeline Lilly, Michael Douglas
Three stars
Gully Boy
Director: Zoya Akhtar
Producer: Excel Entertainment & Tiger Baby
Cast: Ranveer Singh, Alia Bhatt, Kalki Koechlin, Siddhant Chaturvedi
Rating: 4/5 stars
The five pillars of Islam
Lewis Hamilton in 2018
Australia 2nd; Bahrain 3rd; China 4th; Azerbaijan 1st; Spain 1st; Monaco 3rd; Canada 5th; France 1st; Austria DNF; Britain 2nd; Germany 1st; Hungary 1st; Belgium 2nd; Italy 1st; Singapore 1st; Russia 1st; Japan 1st; United States 3rd; Mexico 4th
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5