Published: November 28, 2017
Emaar Development priced the largest initial public offering the Dubai exchange has hosted for three years, but some are warning that the global equity markets are being driven by investors’ fear of missing out rather than faith in strong fundamentals.
The company priced the trade at the lower end of the AED6.03 to AED6.90 per ordinary share price range. However, this was still above the AED5.70 to AED6.90 range that the company opened books at on November 2. Emaar Development sold a 20% stake, equal to 800 million shares. The final sale price values the company at AED24.1bn (US$6.56bn).
The newly listed firm has “targeted dividends of US$1.7bn to be paid over the next three years,” said Mohamed Alabbar, chairman of Emaar Properties, in a statement, “indicating strong dividend yield, especially in comparison to our peer group”.
The first dividend is planned for the third quarter of next year.