IPO to offer 800 million shares, starting November 2, Emaar says
Emaar Development IPO to be similar in size to $1.58bn Emaar Malls flotation
Emaar Properties,the UAE's biggest listed property developer, has priced the initial share sale of its real estate development subsidiary, Emaar Development, which will be similar in size to the US$1.58 billion flotation of its malls unit in 2014.
Emaar, which is selling 20 per cent of its real estate business, will offer 800 million shares and will announce the offer price range at the opening of the initial public offering (IPO) next month, it said in its prospectus on Dubai Financial Market (DFM)’s website.
The prospectus said 90 per cent of the offer would be reserved for institutional investors, while 10 per cent would be available to retail investors.
Forty million shares would be reserved for the Emirates Investment Authority, the prospectus added.
The Emaar Development offer will be in two tranches, according to the prospectus, with the first taking place between 2-13 November 2017 and the second between 2-15 November.
Dividends from the offering will be distributed to investors in January, Emaar said in a separate statement.
Emaar Properties announced the IPO plans earlier this week, scaling back initial plans for up to a 30 per cent stake sale of Emaar Developments.
The reduced size of the offering disappointed investors, with shares in Emaar tumbling 2 per cent on Sunday.
However, the announcement of the IPO is still significant, as only one company - insurer Orient UNB Takaful - has listed on DFM since Dubai Parks and Resorts in November 2014.