Emaar Misr sets IPO price at EGP3.8 a share

Emaar Misr is floating 12.99 per cent of the company, amounting to 600 million shares. Of these, 510 million have been allocated to institutional investors.



By Issac John (associate Business Editor)

Published: Fri 19 Jun 2015, 10:24 PM

Last updated: Wed 8 Jul 2015, 3:06 PM

Dubai: Emaar Properties announced on Thursday that its Egyptian subsidiary Emaar Misr had priced its initial public offering at EGP3.8 ($0.4980) per share.

Based on the offer price, Emaar Misr’s market capitalisation at listing will be approximately EGP 17.6 billion ($ 2.3 billion), the Dubai-based developer said.

Emaar said earlier this month the offer would be priced at between EGP3.5 and EGP4.25 per share.

Mohamed Ali Alabbar, Chairman of Emaar Misr, said the IPO  is the largest on the Egyptian bourse this year. “We are very pleased by the strong institutional demand and quality interest in becoming a shareholder of Emaar Misr from western, regional and Egyptian institutional investors, a testimony to the quality of the business, its growth profile and its management team.”

Alabbar said the company’s focus remains on establishing a strong base of shareholders to support our future development plans and growth strategy. “We look forward to concluding the public offering tranche, and to the Company’s next growth phase as a listed company.”

Emaar Misr is floating 12.99 per cent of the company, amounting to 600 million shares. Of these, 510 million have been allocated to institutional investors. This tranche was 11 times oversubscribed, Dubai-listed Emaar said in a statement to Dubai Financial Market. The remaining 90 million shares will be offered to other investors until June 25 and Emaar Misr is likely to list on the Cairo bourse around July 2.

Emaar Misr said it would use the net proceeds raised from the Offering, together with its existing cash resources, principally to further the development of the commercial areas of its projects under development, including primarily Emaar Square in Project Uptown Cairo, the planned international marina and hotels in Project Marassi and Downtown area in Project Mivida. The company also intends to use a part of the net proceeds  to fund pre-launch expenditures and costs in relation to the development of Cairo Gate, as well as selectively growing its landbank through the potential acquisition of select land plots.

Emaar Misr appointed EFG Hermes and JP Morgan as the joint global coordinators and joint bookrunners for the Offer.

Founded in 2005, Emaar Misr is a leading developer of premium master planned lifestyle communities in Egypt. Emaar Misr’s landbank of 15.4 million square metres is distributed among four prime locations strategically in East, West and Central Cairo as well as Egypt’s Mediterranean coast. According to an independent property valuation undertaken by DTZ Qatar LLC, the aggregate market value of Emaar Misr’s properties (for its four projects that it fully owns) as of December 31, 2014, was EGP23.4 billion.

issacjohn@khaleejtimes.com


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