THE PLANNED London flotation of Damac, the Dubai-based property group, received a boost last night when Dubai was chosen as the venue for Expo 2020, beating off stiff competition from cities in Brazil, Turkey and Russia.
Potential investors in the upcoming float had asked for the bookbuilding process, which should have closed on Tuesday evening, to be extended to allow time for people to assess the consequences of the Expo 2020 venue decision.
Winning the event, which is expected to attract thousands of tourists to the emirate, is being seen as massively positive for the economic wellbeing of the region. Yesterday, fireworks erupted in Dubai after it became the first Middle Eastern city to organise the event in its more than 150-year history.
Dubai authorities expect Expo 2020 to generate $23bn between 2015 and 2021. Advisers to Damac hope the news will encourage potential investors to buy shares in the forthcoming flotation. The issue was yesterday downsized even at the lower end of the price range.