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 shares gained on DFM following its announcement to sell 30% of its UAE property business [representational image].
Emaar shares gained on DFM following its announcement to sell 30% of its UAE property business [representational image].

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).

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020