Emaar Misr to float IPO on Egypt stock exchange
Parent group Emaar Properties to retain 87% of Emaar Misr's post-offer share capital
The Egyptian subsidiary of Dubai's Emaar Properties, Emaar Misr, has announced its intention to proceed with an initial public offering (IPO), while its parent company will retain an 87% stake after listing on the Egyptian bourse.
The IPO will comprise a public offering to retail investors in Egypt, and a private placement to institutional investors in “a number of countries, including in Egypt”, Emaar said in a statement to Dubai Financial Market (DFM), the city’s stock exchange.
Emaar Misr intends to use the amount raised from the offering, along with its existing cash resources, to further the growth of its under-development projects’ non-residential areas. These primarily include Emaar Square in Uptown Cairo; the planned international marina and hotels in Marassi project; and Downtown area in Mivida project (comprising both retail and office space).
A part of the funds raised from the offering will also be used for pre-launch expenditures and costs associated with the development of Cairo Gate, as well as selectively growing its land bank through the potential acquisition of select land plots that match the investment criteria of Emaar Misr.
“The IPO of Emaar Misr marks a significant development for business in Egypt. The injection of new capital will allow Emaar Misr to continue to pursue new growth opportunities and further progress its landmark developments,” Mohamed Alabbar, chairman of Emaar Properties remarked.