Dubai’s Damac Shares Surge On Home Market Listing

Shares in Dubai-based real estate developer Damac surged as they listed on the emirate’s bourse on Monday, after the company initially floated global depositary receipts in London in late 2013.

Damac traded at Dhs3.19, up 14 per cent from its London close last Friday. It dominated trading volume in Dubai; the market’s main stock index was up just 0.9 per cent.

Property firms enjoy richer multiples in Dubai than in London. Damac’s Friday close was at 5.9 times its 2013 earnings. Dubai’s biggest listed developer Emaar Properties trades at a ratio of 20.5 and its smaller competitor Deyaar is valued at 31.8 times 2013 earnings.

Before its Dubai listing, Damac offered to allow holders of its London GDRs to exchange them for Dubai-listed shares. The offer closed last Friday and Damac has not yet announced its result.