RAK Properties launches AED1.1 billion IPO

Subscriptions will be available to UAE and GCC nationals, as well as expatriates and foreigners, from March 30 to April 12, 2005, with the value of each of the 1.1 billion shares set at AED1.

In the offering, 200 million shares will be available pro rata to small investors, with a minimum subscription of 20,000 shares, and a maximum of 100,000 shares. The remainder, or 900 million shares, will be offered to individuals and institutions, provided that the minimum subscription should be AED101,000. without a maximum limit. Subscriber requests in excess of the minimum must be in 1,000-share multiples.

Share allocations will be done on pro rata basis in respect of each of the two categories mentioned above.

Of a total capital funding of AED2 billion, 45 per cent was invested by the company's founders, including the Government of Ras Al Khaimah, while 55 per cent will be funded through the IPO. Secondary market trading in the public joint stock company will comply with UAE listing regulations, allowing 51 per cent ownership for UAE nationals and 49 per cent for expatriates.

"The company will invest its funds in real estate project development in various markets, the first and major stage being Ras Al Khaimah." said Izzat Dajani, chief executive of the Investment and Development office, who announced the establishment of RAK Properties last week.

The company is incorporated in Ras Al Khaimah through Amiri Decree No. 5/2005, issued by H.H. Sheikh Saqr bin Mohammed Al Qasimi, Ruler of Ras Al Khaimah, on 16 February 2005.

Six receiving banks will accept subscriptions: the National Bank of Abu Dhabi (main subscription bank and subscription records Manager); the National Bank of Ras Al Khaimah; the International Commercial Bank; Abu Dhabi Islamic Bank; First Gulf Bank; and the United Arab Bank.

Deloitte and Touche will act as the company's Business Consultants, Afridi and Agnell as Legal Advisors, Cadiz as master-planning and design consultants and Halcrow as Infrastructure Development Consultants. KPMG will act as the company's auditors.

To signal its commitment to the new company, the Government of Ras Al Khaimah will provide 72 hectares of free land for the development of the waterside Mangrove Island, as well as a further 150 hectares in the Port Arabia (Khor Qurm area) and the new Emirates highway for a second phase of expansion. It will develop elements of these projects itself, and sell or lease rights to outside investors to oversee other components.

Incorporated in 2000, the RAK Free Trade Zone has licensed over 400 companies from 33 countries. Saqr Port is undergoing an AED165 million upgrade to increase cement and bulk handling capacity while Ras Al Khaimah International Airport is witnessing enhanced activity. The new Emirates Highway, planned to bring travel times to Dubai down to under 50 minutes, is scheduled for completion springing the second half of 2005.