Dubai: Emaar Development opens DFM listing
Mohamed Alabbar, the chairman of Emaar Development, the build-to-sell (BTS) property development business of UAE-based Emaar Properties, rang the market-opening bell to celebrate the listing of its shares on the Dubai Financial Market (DFM).
The shares of Emaar Development were priced at AED6.03 per share, within its initial price range, giving the company a market capitalisation of AED24.1bn at the time of listing. The company is now trading under ‘Emaardev.’
Final allocations were approximately 93.8% to qualified investors and 6.2% to individual and other investors.
On the successful listing, Alabbar said: “Today is a transformative day for Emaar Development, and marks an important next step in our work of shaping cities of the future. Already a flagship brand and a market leader in Dubai, our successful IPO demonstrates that regional and international investors are excited by our proven business model; specifically, our backlog of AED41bn; our high cash flows; and our targeted dividend yield of 8.6% for the next three years, which the company believes is higher than our competitors, and expected to increase in the future.”
He added: “Additionally, today marks a milestone for the DFM, a maturing financial centre well-positioned to benefit from Dubais position as a global investment hub. I would like to express my gratitude to the Securities and Commodities Authority and the Dubai Financial Market for their excellent support and assistance during the IPO process. We are confident that this is just the beginning of a bright future for Emaar Development and our shareholders.”
BofA Merrill Lynch, EFG Hermes UAE Limited, Emirates NBD Capital, First Abu Dhabi Bank, and Goldman Sachs International are the joint global co-ordinators for the offering. Emirates NBD and First Abu Dhabi Bank are the lead receiving banks.
The company plans to launch approximately 50,400 units over the next 5 years with an average annual unit sales target of 10,000 units and a targeted overall gross profit margin of 40%, in line with its historical track record.
