Amlak to sell 55% of its equity

The Dubai-based mortgage finance company will offer 412,500,000 shares at Dhs1 each in a public subscription starting on January 18.

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By  David Ingham Published  January 13, 2004

Amlak Finance is to sell 55% of its equity to the public and convert itself into an Islamic financial institution. 412,500,000 shares will be sold to the public at a price of Dhs1 each; EMAAR Properties PJSC will retain a 45% stake in the company after the offering. “The IPO, which opens on January 18, 2004 for a 10 day period, invites UAE national and expatriate investors to gain exposure to the dynamic UAE real estate sector, while the transfer to Shariah compliant operations will ensure a solid investment opportunity for the growing pool of Islamic funds in the region,” said Mohamed Ali Alabbar, chairman of Amlak. “Both initiatives were taken with a view to increasing Amlak’s lending activity and achieving the goal of making the dream of home ownership a reality.” Amlak says the move will allow it to access more capital and increase its lending. The value of money it has committed to lending reached Dhs1.5 billion in 2003, with Dhs550 million of that already disbursed. The company said in a statement that the ‘key’ terms of all existing mortgages, such as rates, would remain in place. “Existing clients can be assured that the conversion to an Islamic financial institution will further enhance the quality of the services that we provide,” said Al Abbar.

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