Agencies fight for $15bn IPO

Nakheel, developer of Dubai's man-made palm islands, is seeking PR support for its planned $15bn flotation.

Dubai's palm islands: Nakheel development
Dubai's palm islands: Nakheel development

City stalwarts such as Dewe Rogerson, Brunswick, FD, Tulchan and Capital MS&L are thought to be on the pitch list for the government owned property giant.

The IPO is slated for February, though it is thought this timescale may be ambitious given the problematic state of the Dubai property market.

Speculation is rife that the Dubai property bubble has bust, with investment firm EFG Hermes predicting values to fall 15 to 20 per cent in 2009.

These issues have already impacted Nakheel - last week it cut 500 jobs (15 per cent of its workforce) and has scaled back a number of projects.

One senior agency source remained unconvinced that the IPO would come to speedy fruition because of these current fractious market conditions.

Despite the global economic crisis, Nakheel is understood to be keen to raise capital via a flotation as it needs to refinance a $3.52bn bond that matures in December 2009 and will struggle refinance at a similar rate.

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