Shares of the retail division of Dubai's Emaar Properties surged in first trading Thursday after an initial public offering that highlighted a return of investor confidence in the Gulf market.
The IPO of Emaar Malls Group -- which owns one the world's largest shopping centres, the Dubai Mall -- was aimed at raising $1.58 billion (1.25 billion euros) but was 30 times oversubscribed.
It was the largest IPO in the United Arab Emirates since the global financial crisis hit the country in 2009, causing a drought in flotations.
Sold ahead of flotation on the Dubai exchange at the top offer price of 2.9 dirhams ($0.79), Emaar Malls Group shares jumped 20 percent to around 3.5 dirhams on opening, reflecting a huge pre-trading demand.
The pricing gave the group a market capitalisation of approximately 37.7 billion dirhams ($10.3 billion), it said in a statement posted at the Dubai Financial Market website.
The group offered the shares for sale over two weeks starting September 14.
Emaar Malls' order book was oversubscribed more than 30 times for the institutional tranche of investors and more than 20 times for the individual tranche.
The final allocation was around 70 percent for institutional investors, with the remainder allocated to individuals, the group said.
"The response from investors to the offering has surpassed our greatest expectations," said Emaar Malls chairman Mohamed Alabbar, who led the bell-ringing ceremony kicking off trading.
It is a "testament to the confidence in the Emaar Malls business and the UAE's financial markets," he said.
Emaar Properties, the parent group of EM, is the largest listed company on the Dubai Financial Market. It was behind several landmark property developments including the world's tallest tower, Burj Khalifa.
Dubai's economy has made a strong comeback since it contracted due to the global financial crisis, thanks to growth in trade, transport and tourism.
GMT 11:02 2018 Tuesday ,11 December
ASE opens trading on lower noteGMT 15:40 2018 Monday ,10 December
Amman stock market closes trading at JD4.4 millionGMT 19:10 2018 Wednesday ,05 December
Index at Palestine stock market drops by less than one pointGMT 17:58 2018 Sunday ,25 November
Amman stock market wraps up trading at JD2.6 millionGMT 14:24 2018 Thursday ,22 November
Russia’s stock market demonstrates record-breaking figures in 2018GMT 11:45 2018 Tuesday ,20 November
Tokyo stocks close lower as tech issues weigh, Nissan tumblesGMT 15:08 2018 Monday ,19 November
Amman stock market wraps up trading at JD6.1 millionGMT 15:51 2018 Sunday ,18 November
U.S. stocks post weekly losses amid tech shares routMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor