Dubai – Emaar Group shareholders have approved the listing of the company’s real estate arm into a publicly traded unit, the Dubai-based property developer Emaar said in a bourse statement on Sunday.
In a meeting on Saturday, shareholders approved the conversion of Emaar Development (LLC) into a public joint stock company to list on the Dubai Financial Market (DFM) by offering up to 30 per cent of its shares, a statement said. The listing is expected next month.
The 30 per cent listing, which analyst estimate could raise up to US$2 billion, will be only the second IPO [initial public offering] on the Dubai bourse since 2015.
The forthcoming IPO will be the largest since the Emaar Malls IPO, which was oversubscribed by more than 20 times and raised Dhs5.8 billion in 2014, the company said at the time.
Emaar Malls was added to the DFM in 2014, with its Egyptian unit hitting the Cairo stock market the following year.
Emaar Development represents 20 per cent of the parent group’s assets. A public listing would clinch more funds for Emaar’s overall investment strategy.
“It was resolved to approve the transfer of certain assets of the real estate development business of the company in the UAE… to Emaar Development (LLC)”, it added.
Some of the assets that the new business is expected to have include 49 units in Dubai’s Burj Khalifa, several mixed-used projects under construction, and joint ventures.
Emaar first announced plans of the listing in June, and said that funds raised through the sale of equity will be primarily distributed as dividends to Emaar’s shareholders.
It is estimated that the real estate development business is expected to be valued at Dhs24bn. The valuation is based on the assets Emaar plans to inject into the development business.
Emaar’s real estate business recorded sales of Dhs14.4bn in 2016, up from Dhs4.2bn in 2012. – firstname.lastname@example.org