Are you buying into Emaar Development IPO

By Rajive Singh

IPO priced at Dh5.70 and Dh6.90

DUBAI 5 November, 2017: Emaar Development, a unit of the UAE’s biggest listed developer Emaar Properties, has opened the subscription of its initial public offering, IPO, setting the pricing between Dh5.70 and Dh6.90 per share.

At the mid-point of the pricing range, Emaar Development’s market capitalisation at listing would be approximately Dh25.2 billion, said Wam.

The firm is offering 800 million shares, or 20 per cent of its share capital, for subscription to both retail and institutional investors, the company said.

The share float, the first significant equity capital markets deal to hit Dubai Financial Market, DFM, in three years, opened for retail investors’ subscription between November 2-13 while the period of the subscriptions for the institutional investors is extended to November 15.

Retail investors will be able to subscribe to 10 percent of the offering, with the remaining 90 per cent reserved for institutional investors, including 40 million shares for the Emirates Investment Authority.

The company said it expects to announce the final pricing for the offering November 16 and the shares to commence trading on the DFM on November 22. The final sale price will be determined in accordance with a book-building process and investors in the retail offering will be allocated shares at the same price as investors in the qualified investor tranche of the IPO.

Bank of America Merrill Lynch, EFG Hermes, Emirates NBD Capital, First Abu Dhabi Bank and Goldman Sachs are acting as the joint global coordinators on the deal, while Emirates NBD and FAB are the lead receiving banks. Rothschild is the financial adviser on the transaction.