Dubai Financial Market unveils IPO

DFM intends to raise AED 1.6 billion (US$ 435 million) by offering 1.6 billion shares through its IPO. The subscription will open on Sunday, November 12, 2006 and close on Thursday, November 23, 2006. The prospectus will be available on www.dfm.ae

The Ministry of Economy has approved the paid-up share capital of DFM as AED 8 billion comprising 8 billion shares, fully owned by the Government of Dubai the existing shareholder, who in turn will be offering 1.6 billion shares representing 20% of the paid up capital through the IPO.

Each share offered through the IPO is priced at AED 1 (AED One). In addition, there will be an "offering cost" of AED 0.03 per share, which will be used to cover all costs and expenses incurred on the IPO.

The 1.6 billion shares of the upcoming IPO will de divided into two offerings, the private offering of 720 million shares and public offering of 880 million shares . The private offering (or preferential allocation) is meant for specified investors and will include the current national employees of the Government of Dubai, and retired nationals from Dubai, a kind gesture sanctioned by H H Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and prime minister of UAE, Ruler of Dubai. Other segments of the private offering will comprise stock brokerage companies and listed companies, both considered by DFM as an integral part of its huge success since its incorporation.

A preferential share allocation of 720 million shares representing 45% of the 1.6 billion shares as part of the IPO will be available for subscription to the following eligible investors:

1. Employees of the Dubai Government and companies owned 100% by the Dubai Government; and retired Dubai Nationals (irrespective of who their employer was prior to retirement)
2. Brokerage companies accredited to the DFM
3. Companies listed on the DFM

Preferential share allocation
Employees of Dubai Government & Companies owned 100% by Dubai Government and retired UAE nationals from Dubai
400 million shares
Brokerage Companies
a) Existing brokerage companies accredited to the DFM
a) 80 million shares
b) New brokerage companies that will be accredited to DFM in the Future.
b) 80 million shares
Listed Companies
a) Existing Listed companies listed on the DFM
a) 80 million shares
b) New listed companies that will be listed on DFM in the Future.
b) 80 million shares

The balance of 880 million shares representing 55% of the 1.6 billion shares as part of the IPO will be available for subscription to UAE Nationals, GCC Nationals, foreigners and institutions within and outside the UAE and GCC.

With a minimum subscription of 15,000 shares and a maximum of 99,000 shares, DFM has allocated 200 million shares for UAE Nationals who do not qualify under "Preferential Share Allocation".

Public share allocation
UAE Nationals who do not qualify under "Preferential Share Allocation"
200 million shares
Public investors: GCC Nationals, Foreigners and institutions within and outside the UAE and GCC
680 million shares

To ensure fair distribution amongst private & public category investors, the Employees of Dubai Government and retired UAE nationals from Dubai who apply for shares in the preferential category will not be able to apply in the public category.

Commenting on the launch of the IPO, Essa Kazim, Director General of DFM said: "We are thankful to His Highness Sheikh Mohammed bin Rashid Al Maktoum for all his support. We are grateful to The Ministry of Economy for sanctioning the necessary approvals. DFM's IPO is unique considering that it is the first listing of a stock exchange in the Middle East and I'm confident that it will herald a new trend in the region."

"DFM IPO is also a pioneering effort in sharing wealth with Dubai Government employees, locals, our valued partners comprising brokers & listed companies and across nationalities and institutions.."

Dubai Bank has been appointed as the Lead Arranger, Financial Adviser, Manager and Book Runner for the IPO.

DFM is a trusted brand name and is the primary listing venue in the UAE for 44 companies, (as of October 31, 2006) 6 bonds and Sukuks and 11 mutual funds. DFM provides a gamut of services ranging from listing and trade execution to clearing and settlement as well as data and information services. DFM has a network of 90 brokers. For the year 2005, DFM's total revenues stood at AED 1.289 billion and net income stood at AED 1.253 billion.