Emaar plans to float 13 per cent of Egypt unit

Emaar Properties on Wednesday announced its plans to list a 13 per cent stake in its Egyptian unit on Cairo’s stock exchange.

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.

The largest listed developer in the UAE 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 per cent 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 to the Egyptian government. Emaar said its unit would use some of share sale proceeds to fund new developments and expand its land bank in Egypt.

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,” he said.