Dubai Developer Damac Said Valued at Up to $5.4 Billion

Damac Real Estate Development Ltd. is valued by analysts at $3.9 billion to $5.4 billion in its London initial public offering, according to three people briefed on the process.

Analysts at banks managing the IPO published research today with their estimated equity-valuation range for Damac, said the people, who declined to be named as the information is private. The range is an average of the published research.

Damac Properties Development Co., a Dubai-based housing developer, plans to raise as much as $500 million in the IPO. Al Firdous Holding and Sahira Co., controlled by Damac founder and chairman Hussain Sajwani, will offer global depositary receipts in a new company called Damac Real Estate Development. Each GDR will be worth three ordinary shares of the company, according to a statement today.

A spokesman for Damac in Dubai declined to comment on the sale valuations.

Citigroup Inc., Deutsche Bank AG and VTB Capital Plc are among banks managing the company’s listing.

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