Emaar's UAE business IPO boosts DFM's construction shares
Transactions worth $128m were recorded after the announcement, with the Dubai Financial Market General Index recording a three-month high
Emaar Properties' share price closed at $2.07 (AED7.60) apiece following the company's announcement to sell 30% of its UAE real estate business on Dubai Financial Market (DFM).
Transactions worth $128m (AED470m) were recorded after the announcement, with the DFM General Index recording a three-month high at 3,406 points.
Shares of the company's entertainment arm, Emaar Malls, were valued at $0.70 (AED2.56) apiece.
Construction companies listed on DFM appeared to buoy following Emaar's announcement.
Damac shares closed at $0.81 (AED2.96) apiece, while Union Properties (UP) was valued at $0.25 (AED0.929) per share, WAM reported.
The decision to list Emaar’s UAE real estate development business was said to be a result of an internal review of the company's asset values. Funds raised through the sale of equity will be primarily distributed as dividends to its shareholders.
Emaar’s real estate development in UAE has recorded significant growth over last five years.
The developer's UAE projects backlog amounts to $10.9bn (AED40.1bn).