Dubai property developer DAMAC's shares surge on privatization plan

The DAMAC logo. (Supplied)

Shares of Dubai’s DAMAC Properties surged more than 11 percent in early trade, its biggest percentage rise in over three months, after Reuters reported its chairman was considering buying out minority shareholders and taking the company private.

The company said in a bourse filing it had not received any acquisition requests from any party to date.

On Tuesday, Reuters quoted a source saying Hussain Sajwani, who founded the company nearly two decades ago, had been exploring a deal to take the firm private since late 2019 after DAMAC’s share price plunged in the past two years.

For all the latest headlines follow our Google News channel online or via the app

The stock climbed as much as 11.7 percent in early trade to 0.77 dirhams, its biggest intraday gain since March 25. At 0753 GMT, it was up 9.7 percent and more than 2 percent higher in the year to date.

Shares in the developer, which predominantly operates in Dubai but also has assets in Saudi Arabia, Britain and elsewhere, have been depressed since 2018 due to a downturn in the Dubai real estate market.

Last year, it recorded its first annual loss since 2010 and has posted consecutive quarterly losses this year.

Read more:

Dubai property: Buying and renting villas skyrockets during coronavirus crisis

Saudi Arabian property firm Amlak plans first post-coronavirus Riyadh IPO

Dubai property group Limitless hires advisers to work on restructuring: Document

SHOW MORE
Last Update: Wednesday, 01 July 2020 KSA 13:15 - GMT 10:15
Top