Emaar Development falls short on listing debut
Shares prices for Emaar Development made a lower than expected debut at AED5.61, down 4.3% on Wednesday, according to data from the Dubai Financial Market
Shares prices for Emaar Development made a lower than expected debut at AED5.61, down 4.3% on Wednesday, according to data from the Dubai Financial Market.
Shares were priced at AED5.61 per share, down from its initial public offer price of AED6.03 per share, with prices down 3.65% to AED5.81 an hour after opening.
Final allocations were approximately 93.8% to qualified investors and 6.2% to individual and other investors.
Emaar Properties’ shares, however, rose 1.18% to AED7.69 after opening at AED7.50.
Mohamed Alabbar, chairman of Emaar Development, said: “Today is a transformative day for Emaar Development, and marks an important next step in our work of shaping cities of the future.
“Already a flagship brand and a market leader in Dubai, our successful IPO demonstrates that regional and international investors are excited by our proven business model; specifically, our backlog of AED41 billion; our high cash flows; and our targeted dividend yield of 8.6% for the next three years.”
The share sale is the largest offering in the emirate since Emaar Malls PJSC raised $1.6bn three years ago.