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

Emaar Properties shares rose 1.18% on Wednesday.
Emaar Properties shares rose 1.18% on Wednesday.

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.

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