DUBAI — UAE's biggest initial public offering (IPO) — Deyaar's Dh3.178 billion subscription — was more than 10 times subscribed when it closed yesterday even as thousands more share applications remained under process.

Zack Shahin, the real estate major's chief executive, told Khaleej Times that he could confirm that subscription exceeded 10 times while the subscriber number crossed 50,000-mark as of 2pm yesterday with more applications being processed at some 160 bank outlets. "The overwhelming last minute rush for subscription has forced most banks to extend working hours up to 4.30pm," he said.
Maintaining that investor enthusiasm was in line with the company's expectations, Shahin said the response underscored the liquidity of the market and investors' confidence in Deyaar's strength. He said final tally, which would certainly be higher, would be known only after the application processing is completed by today.
Deyaar, a wholly-owned subsidiary of Dubai Islamic Bank (DIC), is one of the region’s leading real estate players, with over 17 residential and commercial projects across the UAE, Turkey and Lebanon. DIC, the third-biggest Shariah-compliant lender in the Gulf by market value, is selling 3.178 billion shares at 1.02 dirham each, equivalent to 55 per cent of the company. Proceeds from its IPO will be used to finance the company’s massive expansion in property development in a series of mega projects in the UAE as well as spearhead its growth in key strategic markets of Saudi Arabia, Qatar, Kazakhstan and India.
"Both the retail and institutional tranches are fully subscribed by a few multiples," he said. Deyaar should make a net profit of between Dh500 and Dh520 million this year compared to Dh412 million last year, Shahin has said. Deyaar would list on the Dubai Financial Market, likely in August, he said.
Only nationals from the UAE and the other Gulf Arab countries were allowed to buy shares. "The retail subscription has also been massive from all over the GCC excluding perhaps Bahrain."