By Abdul Basit www.khaleejtimes.com
Emaar Properties, the operator of the world’s largest mall, has announced a plan to float 25 per cent shares of its Emaar Malls Group on the Dubai Financial Market, or DFM, as a primary listing.
Last February, the Dubai-based developer announced its plan to raise up to Dh9 billion through initial public offering, using the generated funds primarily to distribute as a dividend to Emaar Properties shareholders.
Companies listing on Dubai’s main bourse are normally required to float at least 55 per cent of stakes.
Emaar has received the required approval from the UAE’s Securities and Commodities Authority, or SCA, to sell up to 25 per cent of its equity in Emaar Malls Group, the company announced on Monday.
The timing of the public offering and listing will be announced at a later date, said Emaar, which scrapped its earlier plans to sell shares in London and Nasdaq Dubai as a dual listing.
Since the announcement was made in the morning, there has been a quick reaction in the market. Emaar stocks rose 3.7 per cent to Dh10, helping the Dubai bourse benchmark index climb 1.9 per cent. Emaar is the biggest company on the bourse and its share price has jumped by more than 43 per cent this year. Following the listing, Emaar Malls Group will add significant value to the bourse, and is expected to drive more foreign direct investment to the country to boost the economy’s overall competitiveness, according to the company.
