Emaar Properties, Dubai’s largest listed developer, lifted the emirate’s bourse in early trade on Tuesday after announcing plans to float its Egyptian unit next year following the successful listing of its malls and retail business.
Shares in Emaar rose 1.4 per cent to Dhs11.35 and were the main support for Dubai’s index, which added 0.4 per cent.
Mohamed Alabbar, Emaar’s chairman, said last Thursday that the company’s Egyptian unit, Emaar Misr, would go public around June 2015 and had a value of Dhs3-4 billion ($817 million-$1.09 billion).
Alabbar also said the company could float its hotels business, but the board had yet to decide whether to go ahead with that.
Last month, Emaar floated its malls and retail unit in a $1.6 billion offer that attracted huge investor demand. Shares in Emaar Malls Group, which surged 12.1 per cent on their stock market debut last Thursday, added 1.5 per cent on Tuesday morning.
Emaar plans to use funds from the completed IPO to pay out a Dhs9 billion dividend and its board will discuss the matter on Oct. 9.
Egypt’s Naeem Brokerage raised its target price for Emaar to Dhs14.61 from Dhs11.96 with a “buy” recommendation, saying the unit spin-offs would help the company unlock value.
Abu Dhabi’s index rose 0.5 per cent on the back of blue chips First Gulf Bank and Etisalat, which were up 1.1 and 0.4 per cent respectively.