Is Nakheel Preparing IPO?

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(DUBAI, UAE) -- What is Nakheel, one of Dubai's two biggest developers, up to in London? Are the rumors true? Whoever knows for sure isn't talking, but according to a report in the Sunday Telegraph, the company is considering an initial public offering to raise up to $15 billion.

The story claims that JP Morgan's bankers are looking at ways to list Nakheel both at home on Nasdaq Dubai and in London. When this might happen isn't explained.  A spokesman for Nakheel said only, "Nakheel is always looking into capital-raising options and an initial private offering is one of them."

Rumors about an IPO surfaced in December when banking sources were quoted on Bloomberg as saying that Nakheel was looking for IPO managers. Around the same time, Nakheel announced that it was reducing its workforce and putting some projects on the back burner while forging ahead with others.

One of those that is continuing is the Badrah section of the Waterfront development that was launched last May. Nakheel discovered in a survey while marketing those properties that environmental friendliness is the main concern of potential buyers. Four hundred respondents in Dubai, Abu Dhabi, and Sharjah emirates named that first in a list that included reputation, reliability, affordability, and innovation.

Matt Joyce, Managing Director of Waterfront Nakheel, said, "This is the first time we've seen environmental concerns come through this strongly.  We are currently working to align our products and services even more closely with this growing demand."

Environmental friendliness is could also be a plus for the buyers of Nakheel shares if that IPO happens any time soon.