EMIRATES NBD Capital Limited (EMCAP), the investment banking division of Emirates NBD PJSC, one of the largest banking groups in the Middle East by assets, has successfully completed its role in the landmark IPO of ENBD REIT, which admitted shares to trading on Nasdaq Dubai last March 23. EMCAP acted as Listing Advisor to ENBD REIT, as well as Joint Global Coordinator and Joint Bookrunner. ENBD REIT successfully issued 94,594,595 ordinary shared at a price of $1.11 per share, which climbed to $1.17 (up 5.17%) on the first day of trading. The IPO was Dubai's first since Dubai Parks & Resorts floated in December 2014, a transaction on which EMCAP was also Joint Global Coordinator and Joint Bookrunner.
ENBD REIT's offer was well over-subscribed with commitments from a mix of investors representing both financial institutions and family offices across the GCC. The transaction was successful in balancing the holdings of existing and incoming investors. The final offer price of $1.11 per share was equivalent to a 7.5% discount on net asset valuation (NAV). Ahmed Al Qassim, CEO of Investment Banking at EMCAP, said: "The success of ENBD REIT's listing reinforces our position as the UAE's top IPO investment bank for listings on Nasdaq Dubai and DFM. We've consistently played a leading role in recent IPOs, providing our clients with best-in-class advisory and unparalleled investor coverage. The strong demand experienced by ENBD REIT's offer was a clear testament to the appetite that exists for such strong equity stories."
EMCAP was financial adviser prior to the IPO process, working closely with Emirates NBD Asset Management, the REIT's manager, on pre-IPO preparation, evaluation of options and transaction structuring before the decision was made to go ahead with an IPO. Subsequently, as Listing Advisor to ENBD REIT, EMCAP also had a key role in helping the issuer to adapt to the Dubai Financial Services Authority (DFSA) regulatory framework on re-domiciliation from the Channel Islands.
Tariq Bin Hendi, Director of ENBD REIT, said: "We're very pleased to have had the exceptional support of EMCAP throughout our IPO. Their capital markets expertise has been of enormous value to the real estate team, and they've been a trusted partner on every step of this long and exciting journey. With EMCAP's help our team has successfully undertaken the process of restructuring and re-domiciling an open-ended vehicle to become a closed-ended investment company that is now publicly traded on Nasdaq Dubai. This was a truly impressive achievement for all involved."
EMCAP's role in the transaction was part of a wider, group-level involvement by Emirates NBD in the incorporation and listing of ENBD REIT. Emirates NBD Asset Management, a wholly-owned subsidiary of the Bank, is the fund manager for the REIT (previously Emirates Real Estate Fund). Meanwhile, in November 2016, the fund agreed a $190.6 million Shariah-compliant finance facility with Emirates NBD, on attractive commercial terms.
