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DUBAI — The developer of palm-shaped islands off Dubai's coast said Sunday it is considering selling shares to the public but didn't say how soon.
Nakheel made the comments in response to questions about a published report that it is working with investment bank JPMorgan Chase & Co. on a plan to possibly float its shares in London and Dubai later this year.
"A company the size of Nakheel is constantly exploring all capital raising options," the Dubai-based developer said in an emailed statement. Nakheel said an initial public offering is among the possibilities being considered, though it added that this "doesn't mean that an IPO is imminent."
London's Sunday Telegraph newspaper reported that Nakheel was working with bankers on a plan to raise as much as $15 billion through stock sales.
The paper said JPMorgan was working on various proposals, including a dual listing on the Nasdaq Dubai and in London, though the timing of the offering was not yet decided.
JPMorgan spokeswoman Colette Campbell said the bank "cannot comment on market rumors" and referred questions to Nakheel.
Speculation of a public offering has swirled around the developer for some time. The company recently cut costs and scaled back work on some of its most ambitious projects amid slumping demand.
Nakheel raised $3.52 billion in 2006 by selling Islamic bonds that come due at the end of this year. Bondholders would be able to convert their holdings into stock if the company decides to float shares.
However, it remains unclear how soon the company could find other buyers willing to take a risk on untested stock. Dubai property prices, stock markets and hotels are all struggling as a result of the economic downturn.
Nakheel is part of government-run conglomerate Dubai World. Besides its several man-made archipelagoes, the company's investments include New York's Mandarin Oriental, the cruise ship Queen Elizabeth 2, and partial stakes in circus group Cirque du Soleil and the recently opened Atlantis hotel in Dubai.
One of its sister companies, port operator DP World, floated its shares on what is now Nasdaq Dubai in November 2007. They have since fallen nearly 70 percent.
