Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. IMD-1-0295
Published by: Institute for Management Development (IMD)
Originally published in: 2010
Version: 07.12.2010
Length: 20 pages
Data source: Published sources

Abstract

This case is about the IPO of Air Arabia in 2007 in the United Arab Emirates. Raising capital in the UAE had begun with Decision 12, issued by the Council of Ministers in 2000; activity had grown from 2 IPOs in 2002 to 53 in 2007. A portfolio manager for EFG-Hermes in Dubai, a competitor of the IPO underwriter and book runner, needs to determine the value of an Air Arabia share. The valuation was complicated by newness of the UAE stock market, its illiquidity relative to the US or UK and the fact that it was a company with no comparable company in the region. Learning objectives: Valuation in of stock prices in uncertain and illiquid markets.
Industry:
Size:
2006 revenues AED749, operating profit AED76, profit AED102, 464 employees
Other setting(s):
2007

About

Abstract

This case is about the IPO of Air Arabia in 2007 in the United Arab Emirates. Raising capital in the UAE had begun with Decision 12, issued by the Council of Ministers in 2000; activity had grown from 2 IPOs in 2002 to 53 in 2007. A portfolio manager for EFG-Hermes in Dubai, a competitor of the IPO underwriter and book runner, needs to determine the value of an Air Arabia share. The valuation was complicated by newness of the UAE stock market, its illiquidity relative to the US or UK and the fact that it was a company with no comparable company in the region. Learning objectives: Valuation in of stock prices in uncertain and illiquid markets.

Settings

Industry:
Size:
2006 revenues AED749, operating profit AED76, profit AED102, 464 employees
Other setting(s):
2007

Related