Share prices of Emaar Development PJSC, the property development business of Emaar Properties, fell on the first day they were listed on the Dubai Financial Market (DFM).
Shares of Emaar Development were priced at AED 5.61 per share, down from its initial public offer price of AED 6.03 per share. Just over an hour after opening, share prices were down 3.65 percent to AED 5.81.
Emaar Properties shares, however, rose 1.18 percent to AED 7.69 after opening at AED 7.50.
“Even if several investors in the region could see that Emaar’s IPO is listing at a difficult time, no-one will forget the listing or the size of his IPO,” said Issam Kassabieh, an analyst at Menacorp.
“It is expected that investors will turn back to the stock once the market picks up and the region stabilises."
Speaking at a bell ringing ceremony on Wednesday morning, Emaar Properties chairman Mohamed Alabbar said that the listing of the shares marked “a transformative day” for Emaar Development.
“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 AED 41 billion ($11.6 billion); our high cash flows; and our targeted dividend yield of 8.6 percent for the next three years, which the company believes is higher than our competitors, and expected to increase in the future,” he said.
“We are confident that this is just the beginning of a bright future for Emaar Development and our shareholders."
Kassabieh added that the share price may fluctuate further before the market closes in three hours.
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