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Wed 20 May 2015 10:14 AM

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Dubai's Emaar to float Egypt unit on Cairo bourse

Burj Khalifa developer did not reveal a timeline, but confirmed it is to retain 87% of its subsidiary after the listing

Dubai's Emaar to float Egypt unit on Cairo bourse

Dubai's Emaar
Properties plans to list a 13 percent stake in its Egyptian unit on Cairo's
stock exchange, the largest listed developer in the United Arab Emirates said
on Wednesday.

The share sale
will comprise of a public offering to retail investors in Egypt, plus a private
placement to local and international institutions, according to a filing to the
Dubai Financial Market.

Emaar did not
state when the initial public offering of Emaar Misr would be launched, but
said it was still finalising internal and regulatory approvals for the sale. It
will retain an 87 percent stake after the listing.

If completed,
the flotation will underline the link between Egypt and the UAE, with the latter
providing large amounts of financial, energy and political support since the
army toppled President Mohamed Mursi of the Muslim Brotherhood after mass
protests against his rule in 2013.

Emaar said its
unit would use some of share sale proceeds to fund new developments and expand
its land bank in Egypt.

Emaar Misr
would be the second Emaar unit to be listed inside a year, after Emaar Malls
Group raised 5.8 billion dirhams ($1.58 billion) from its 15.4 percent IPO last
September, while the parent firm has also said it wants to float its
hospitality unit.

The Egyptian
unit in April reported a profit of 172.7 million Egyptian pounds ($22.63
million) for the first three months of 2015, up from 30.7 million pounds a year
earlier.

Mohamed Alabbar, chairman of Emaar Properties, said: “The IPO of our subsidiary Emaar Misr marks a significant development for this pioneering business in Egypt and represents an attractive opportunity for prospective investors to invest in one of the largest and fastest growing real estate markets in the Middle East and North Africa. The injection of new capital will allow Emaar Misr to continue to pursue new growth opportunities and further progress its landmark developments. We are committed to achieving sustainable growth for our businesses and delivering value to all of our shareholders.

“Emaar Misr has become a leading developer of premium lifestyle communities in Egypt in a short period of time and is currently well positioned for continued shareholder value growth with a unique portfolio of projects. The track record of success creates a platform for future achievements for Emaar Misr and we look forward to witnessing and continuing to play a role in this journey.”

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