Sources say flotation of Emaar's malls unit will be priced at AED2.90, giving it a value of over $10bn
Emaar Properties, Dubai's largest listed developer, is likely to price the flotation of its malls unit at 2.90 dirhams a share, the top of its range, two sources familiar with the matter said on Wednesday.
The price would give the unit a value of AED37.7 billion ($10.26 billion), one of the sources said. Strong demand has seen the institutional tranche subscribed at 7.5 times at the top end of the 2.50-2.90 dirham range, while the retail tranche is subscribed 20 times, two further sources said.
Last week, Emaar Properties said that its existing shareholders will be allocated one share in its malls unit IPO for every 36 held in the parent firm.
Shareholders can buy the shares in Emaar Malls Group (EMG) on a preferential basis at the price that is set by the institutional book building process, the company said in a statement to Dubai's bourse.
Emaar is aiming to sell 2 billion shares in EMG, representing 15.4 percent of the unit's share capital.
It said when announcing the offering that 10 percent of these shares would be made available for allocation to existing shareholders in priority to other applicants.