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Stock News: Emaar Lifts Dubai As Malls Unit IPO Pricing Nears

Stock News: Emaar Lifts Dubai As Malls Unit IPO Pricing Nears

Emaar plans to sell 15 per cent of its subsidiary Emaar Malls Group (EMG) in an initial public offer launched this month.

Emaar Properties, Dubai’s largest listed developer, helped lift the emirate’s market in early trade on Tuesday on hopes that it will float its malls unit at the upper and of the announced price range due to strong demand.

Dubai’s index rose 1.2 per cent as Emaar gained 1.3 per cent and was the most traded stock.

Emaar plans to sell 15 per cent of its subsidiary Emaar Malls Group (EMG) in an initial public offer launched this month. Subscriptions will close on Sept. 24 for retail investors and two days later for institutional buyers. Shares in EMG will start trading on Oct.2.

The share sale will be one of the largest in the Gulf region this decade and could be worth up to $1.58 billion at the top of the price range which the company set at Dhs2.50 to Dhs2.90 per share.

Emaar has said it would use the funds to pay a special dividend to its own shareholders and some investors are betting on a generous payout.

“Overall, investors are positive on Emaar,” said Ali Adou, portfolio manager at The National Investor in Abu Dhabi. “Investors are looking at a high valuation.”

Abu Dhabi’s bouse rose 0.4 per cent. Abu Dhabi Commercial Bank and Etisalat were up 1.8 and 0.9 per cent respectively.

Qatar’s benchmark slipped 0.5 per cent as heavyweight Industries Qatar fell one per cent. Egypt’s main index was flat shortly after opening.

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