Abyaar Real Estate Development was today listed on the Kuwait Stock Exchange.
Hesham Al Obeid, chairman, said Abyaar has firmly established itself in the regional property and real estate market and, by maintaining solid growth and ongoing increasing profit margins; it has gained the trust of investors.
He said the stock market listing will give Abyaar greater access to capital markets and ease the borrowing processes. As well as improving liquidity, it will simplify access for potential investors and should generate a premium on shares for current investors.
“This is another major milestone for the company, which has invested more than $2 billion into Dubai real estate since 2005 and we have plans to lift this to $4.4 billion by 2008.
“We are working on a new strategy for the company which will be ready by December 2007, and new markets have been put on the focus such as Saudi Arabia and Qatar.”
There were no immediate plans to increase the number of shares available until the planning was completed and future capital requirements were known.
The Kuwait Stock Exchange listing is likely to be followed by a similar move in Dubai next year.
Marzooq Al Rashdan, vice chairman and managing director, said the stock exchange listing was a logical step that follows the successful IPO in 2005, which gave the company the momentum it needed to become a major player in the Dubai property market. At that time 500 shareholders contributed KD35 million which has funded an aggressive development programme.
The company has recently announced an exceptional first six months for 2007, achieving 50 per cent growth in turnover in comparison to the same period last year with a net profit of $32.1 million.
He added that Abyaar is working towards increasing its annual average growth rate to 30 per cnet in the upcoming years.
Abyaar has just handed over the first of two Venti Quattro five-star serviced apartment buildings at Dubai Marina, and work is well underway on Acacia Avenues, the only freehold development in Jumeirah valued at $1.1 billion.
A second five-star Venti Quattro development at the Dubai Marina is on track for handover late next year, as is the case with The Business Centre, a six-storey commercial development at Dubai Investments Park, he said. – TradeArabia News Service