Text size:

  • Small
  • Normal
  • Large
How the ADX closed on May 11, 2011.
How the ADX closed on May 11, 2011.
How the DFM closed on May 11, 2011.
How the DFM closed on May 11, 2011.

IPO of Abu Dhabi developer Eshraq oversubscribed

Market Wrap: Abu Dhabi developer Eshraq was oversubscribed as its initial public offering garnered more interest than expected

An initial public offering by Eshraq, the Abu Dhabi property developer, received more interest than it required to sell 55 per cent of the shares it was putting up for offer, on the last day of the subscription period yesterday.

"Despite launching a real estate offering at a difficult time for the market, we managed to oversubscribe the IPO," said Majd Maaitah, the director of securities services at the National Bank of Abu Dhabi.

Eshraq wanted to raise Dh825 million (US$224.6m) in the country's first IPO outside the insurance sector to test the public market in two years.

Final details, including when the company will list on the Abu Dhabi stock market, will be released at a later date, Mr Maaitah said.

On UAE bourses, first quarter results dictated the movement of the market.

Energy giant Taqa fell to its lowest point in almost two months foreign exchange losses and a tax hike dragged on first quarter earnings.

Its shares have shed more than 15 per cent in value in just more than 10 days. Yesterday it closed 1.4 per cent to Dh1.38.

Volumes on UAE bourses have been light as long-term investors take a step back while speculators dominate the market.

"When we see low volumes of around 200 million on [UAE] markets, it's the speculators that are the ones dictating the movement of market in absence of long term investor," said Mohammed Ali Yasin, chief investment officer at CAPM Investment.

He added that with first quarter results now largely behind most traders, speculation on second quarter results had begun.

"It's not going to be worse than the first quarter for most companies, but you have to pick and choose," he said.

Dubai's market ended flat at 1,608.49 points and the Abu Dhabi market edged 0.2 per cent higher to 2,675.79 points,

Back to the top

More articles


Editor's Picks

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 A Brabus Mercedes 6x6 Sports Utility Vehicle is readied for display during Auto China 2014 in Beijing, on April 20. Adrian Bradshaw / EPA

In pictures: Auto China 2014 exhibition

Leading automakers have gathered in Beijing for the kickoff of China’s biggest car show, but lacklustre growth and environmental restrictions in the world’s largest car market have thrown uncertainty into the mix. More than 1,100 vehicles are being showcased.

 The New York Stock Exchange. Rising interest rates will shift momentum away from bonds and back towards risk assets such as stocks. Richard Drew / AP Photo

Plan ahead for rising interest rates

It is now over five years since the majory central banks slashed interest rates to record low but that is all about to change. So, how will rising interest rates affect you?

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National