Dubai’s real estate developer Sobha targets IPO in 2022

Dubai’s real estate developer developer Sobha is targeting an IPO for its UAE business in 2022, Bloomberg reported on Thursday.

Sobha hasn’t decided where to list the shares but will wait to meet profitability projections before making a final decision on the IPO, Bloomberg reported citing the company’s founder PNC Menon.

The company expects revenue to jump to about AED2 billion ($545 million) this year from 620 million dirhams in 2018 as it delivers more homes in its Sobha Hartland development.

Prices in Dubai have stabilised and will “stay like this for the next three to five years,” he said. The market is crowded with developers and only the best will survive over the next five years, Menon told Bloomberg.

Due to oversupply and slow economic growth property prices in the UAE have dropped about 27 percent since October 2014. According to real estate experts, residential prices and rents are likely to continue to soften in 2019.