Dubai Financial Market Going Publicposted by MR WAVETHEORY at 11/24/2006 10:43:00 AM
Dubai Financial Market's (DFM) Dh1.6 billion initial public offering (IPO) closed the subcription window for a $435 million IPO which is roughly the same size as the $441 million Nymex Holdings IPO. Latest information available from investment bankers suggest that the issue will be subscribed more than 50 times while the public tranche of the issue is likely to be oversubscribed more than 150 times.
The multiple on DFM is much lower than the multiple on Nymex, At its offer price of Dh1 per share, the DFM IPO is priced at a price-earnings multiple of 6.38 to its 2005 earnings and 9.88 times to its forecast 2007 earnings. The overall market trades at a trailing price-earnings multiple of nearly 14. Nymex trades at 80x trailing twelve months earnings.