Emaar plans to float 13 per cent of Egypt unit

If completed, the flotation will underline the link between Egypt and the UAE, with the latter providing large amounts of financial, energy and political support to the Egyptian government.

By Staff Report

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Published: Thu 21 May 2015, 11:04 PM

Last updated: Thu 25 Jun 2015, 7:38 PM

Dubai: Emaar Properties on Wednesday announced its plans to list a 13 per cent stake in its Egyptian unit on Cairo’s stock exchange.

The share sale will comprise of a public offering to retail investors in Egypt, plus a private placement to local and international institutions, according to a filing to the Dubai Financial Market.

The largest listed developer in the UAE did not state when the initial public offering of Emaar Misr would be launched, but said it was still finalising internal and regulatory approvals for the sale. It will retain an 87 per cent stake after the listing.

If completed, the flotation will underline the link between Egypt and the UAE, with the latter providing large amounts of financial, energy and political support to the Egyptian government. Emaar said its unit would use some of share sale proceeds to fund new developments and expand its land bank in Egypt.

Mohamed Alabbar, Chairman of Emaar Properties, said the IPO of “our subsidiary Emaar Misr marks a significant development for this pioneering business in Egypt and represents an attractive opportunity for prospective investors to invest in one of the largest and fastest growing real estate markets in the Middle East and North Africa.

“The injection of new capital will allow Emaar Misr to continue to pursue new growth opportunities and further progress its landmark developments. We are committed to achieving sustainable growth for our businesses and delivering value to all of our shareholders,” he said.

Emaar Misr, a leading developer of premium lifestyle communities in Egypt, would be the second Emaar unit to be listed inside a year, after Emaar Malls Group raised Dh5.8 billion ($1.58 billion) from its 15.4 per cent IPO last September, while the parent firm has also said it wants to float its hospitality unit.

The Egyptian unit in April reported a profit of 172.7 million Egyptian pounds ($22.63 million) for the first three months of 2015, up from 30.7 million pounds a year earlier.

“Emaar Misr has become a leading developer of premium lifestyle communities in Egypt in a short period of time and is currently well positioned for continued shareholder value growth with a unique portfolio of projects. The track record of success creates a platform for future achievements for Emaar Misr and we look forward to witnessing and continuing to play a role in this journey,” Alabbar said.

Emaar Misr has achieved cumulative net sales of 23.9 billion Egyptian pounds since inception up to March 31, 2015 (of which 7.1 billion Egyptian pounds of net sales were in 2014 and two billion Egyptian pounds in first quarter of 2015.

In 2014, the company recorded impressive revenues growth in 2014, 119 per cent year-on-year rise to 2.6 billion Egyptian pounds and a gross margin of 29.8 per cent. The company’s land bank 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.

With inputs from Reuters



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