Dubai’s Meraas Holding, the developer behind the Bulgari Hotel being built in Dubai, is considering launching an initial public offering, sources close to the company have claimed.
Three sources told the Wall Street Journal the Dubai government-backed real estate firm has sent requests for proposals to several banks looking for advice on how to boost the company’s capital, including the possibility of selling shares as part of an IPO.
“Meraas has a phenomenal land bank and the future holds a lot of potential for them,” said one of the bankers.
The developer is involved in a number of high profile projects, including a development project for a 1.8km stretch of Dubai Creek which will cost about US $544 million, the US $1.6 billion Bluewaters mixed use project along Jumeirah Beach Residence, which will include the world’s largest Ferris wheel and the Citywalk retail project in Jumeirah.
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It also teamed up with Emaar Properties to develop Dubai Inn, a new economy hotel brand and has also partnered with Six Flags Entertainment Corporation, the world’s largest regional theme park company, to build an attraction in Dubai.
However, possibly its biggest project was the joint venture announced last year with Emaar to build a huge residential and commercial area near the city's downtown as part of the Mohammed Bin Rashid City project.
The two government-backed developers plan construction of a commercial centre, low- and mid-rise residences, an 18-hole golf course and other facilities over a 11 million square metre plot of land.
The announcement comes as it was revealed that Emaar is planning to float its malls business later this year.
“If it (Meraas IPO) happens, it will certainly be after the Emaar Malls IPO, which everybody will be looking at,” one of the sources was quoted as saying.
Meraas has not yet commented on the speculation.
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