Dubai ad portals exploring IPOs as real estate rises

Dubai-based classified ad portals Dubizzle and Property Finder are both said to be exploring the idea of selling shares to the public in an initial public offering, Bloomberg reported, citing people familiar with the matter.

Dubizzle is preparing to meet with potential investors and could raise at least $500 million in a possible IPO, the news agency said, without identifying its sources. 

The company is engaging with Emirates NBD, Goldman Sachs, HSBC and Morgan Stanley to potentially advise on an IPO, Bloomberg said. Dubizzle declined to comment on the record.

Rival Property Finder, meanwhile, is also engaging with potential investors with a view of a possible IPO, Bloomberg said. 

The company is “actively engaging with equity investors” and exploring options to expand its capital structure, CEO Michael Lahyani said, without being more specific.

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Last year, Property Finder valued itself at around $1 billion, Bloomberg reported, and secured a $90 million debt facility from US private equity group Francisco Partners.

Dubai property prices have surged more than 70 percent in the past four years, Bloomberg said.