The shareholders of Dubai-based Emaar Group have approved the listing of the company’s real estate arm into a publicly traded unit, 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.
“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.
The developer 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.
The IPO will be the largest since the Emaar Malls IPO, which raised Dhs5.8bn in 2014, the company said at the time.
The real estate development business is expected to be valued at Dhs24bn, sources told Reuters earlier this month. 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.
The company has not yet revealed when the listing will take place, but Emaar chairman Mohamed Alabbar told Al Arabiya TV in June that it could happen in November.