Emirates REIT (CEIC) Limited (“Emirates REIT” or the “REIT”), the first Shari’a compliant regulated real estate investment trust incorporated in the Dubai International Financial Centre (the “DIFC”), today announces that its ordinary shares have been admitted to the Official List of Securities of the Dubai Financial Services Authority (“DFSA”) and admitted to trading on NASDAQ Dubai Limited under the ticker symbol ‘REIT’.
The admission follows a successful international initial public offering (the “Offer”) which was 3.5 times over-subscribed. Shares have been placed with a broad base of institutional investors in the UAE, the wider GCC and the UK.
Emirates REIT priced 128,676,471 new ordinary shares at US$1.36 per share (the “Offer Price”) raising gross proceeds of approximately US$175 million (excluding the exercise of the over-allotment arrangements of up to 19,301,470 additional shares). Based on the Offer Price and the total number of shares in issue, Emirates REIT will have a market capitalisation of approximately US$381.2 million and a free float of 46%.
The net proceeds of the Offer will primarily be used to fund future acquisition opportunities while a portion of the proceeds will be directed towards investment in existing assets. Emirates REIT Management (Private) Limited (the ?REIT Manager”) has already shortlisted several potential real estate properties that it believes complement the REIT’s existing portfolio.
At the listing ceremony which took place today in the Dubai International Financial Centre, Abdulla Al Hamli, Chairman of the REIT Manager, said: “This is a very exciting and significant day for Emirates REIT. We are proud to be the first company, since the market recovery, to be admitted to NASDAQ Dubai and successfully launch the first initial public offering in the UAE. Our strong and distinctive equity story has attracted a high quality institutional investor base, and this will serve as a solid platform from which to start our journey as a publicly listed entity.”
At the same event Sylvain Vieujot, Executive Deputy Chairman of the REIT Manager, said: “We are extremely pleased with the success of our initial public offering and would like to thank everyone who has shown interest in Emirates REIT. This is the culmination of a long but rewarding process, and is the start of a new and exciting phase in the development of the REIT. We look forward to building trust and confidence in our shares, communicating regularly with our existing and new shareholders; both those subscribing through the Offer and those acquiring the REIT’s shares in the secondary market.”
Speaking at the event prior to the market opening for trading, Hamed Ali, Chief Executive Officer, NASDAQ Dubai Limited said: “This is a significant moment for NASDAQ Dubai as it is the first REIT IPO to complete and list on the Exchange in the new era of growth that is underway in the UAE. Whilst we have seen many Sukuk transactions come to market, we are now seeing a growing list of companies preparing to raise equity finance and ready themselves to list on the Exchange over the next 18 months. This is underpinned by our strong platform, supported by international standards of regulation and global links to investors.”
SHUAA Capital psc (“SHUAA”) acted as Emirates REIT’s sponsor and SHUAA and Emirates NBD Capital Limited acted as joint bookrunners in connection with the Offer. EFG Hermes UAE Limited, Abu Dhabi Commercial Bank PJSC and Dubai Islamic Bank PJSC acted as co-lead managers.