Emaar Development, the UAE build-to-sell (BTS) property development business of Emaar Properties has set the offer price for the initial public offering (IPO) of its ordinary shares at Dh6.03 ($1.64) per share.

Based on the offer price, the company’s market capitalisation at listing will be approximately Dh24.1 billion ($6.56 billion).

The number of shares included in the Offering is 800,000,000, which represents approximately 20 per cent of the share capital.

The value of ordinary shares sold by Emaar Properties PJSC totals Dh4.82 billion ($ 1.31 billion).

Final allocations were approximately 93.8 per cent for qualified investors, and 6.2 per cent for individual and other investors.

Listing and trading on DFM are expected to commence November 22 under the symbol “EMAARDEV”.

Mohamed Alabbar, chairman of Emaar Properties, said: “Today marks an important milestone for Emaar Development, as the strong retail and institutional investor interest in our IPO places us closer to achieving our vision for the future. Emaar Development has a clear strategy for growth, a strong sales backlog, high cash flows, and targeted dividends of $1.7 billion to be paid over the next three years – indicating strong dividend yield, especially in comparison to our peer group. We are highly confident in the future of our group, and the benefits that this offering will create for shareholders.”

Recent developments

In accordance with the SCA requirements in connection with the global offering, on November 21, the company will publish an announcement, which will include the company’s gross debt balance, drawings under its debt facility, changes in share capital, in each case as of November 20, as well as total dividends paid to the selling shareholder and updated sales figure for the period from 1 October 2017 to 20 November 2017.

In addition, the announcement will include a statement from the company that there have been no significant adverse changes to its business since 30 September 2017.

The amounts set forth below as at 13 November 2017, and those that will be set forth in the Announcement, have not been audited, reviewed, reported on or approved by the Company’s independent auditor, Ernst & Young Middle East (Dubai Branch) or any other third party.

• Gross Debt: On 30 October 2017, the Company drew down Dh4.0 billion of its Dh4.8 billion murabaha facility and used the proceeds to pay a dividend of Dh3.9 billion (net of fees) to Emaar Properties. The undrawn balance is available for future drawdowns. The Company’s gross debt balance as of 13 November is Dh4 billion. The Company does not expect its gross debt balance to materially change as at 20 November 2017.

• Share Capital: As of 13 November 2017, the Company’s share capital was Dh4 billion. The Company does not expect its share capital to materially change as at 20 November 2017.

• Sales: Between 1 October and 13 November 2017, the Company had sales of Dh1.3 billion and it expects to continue to sell units in the normal course of business between 13 November and 20 November 2017.

In accordance with SCA requirements, the Company will also publish on or around December 25 a balance sheet of the company as at November 20, derived from interim financial statements for the period ended November 20, which will have been reviewed by EY. Investors are therefore cautioned that results may differ from those reflected in the announcement, including those presented above.

Allotment notices and refunds

A notice to successful subscribers in the individual tranche will be sent by way of SMS advising that the applications were received and, if successful, that they will receive a share allocation. This will be followed by a notice sent by registered mail. Notification of the final allocation of the shares offered for sale, and the refund of surplus amounts and accrued interest (if any), following the closing of the subscription period and prior to the listing of the company’s shares shall be performed solely by, and processed through the method which the payment of the original application amount was made.

BofA Merrill Lynch, EFG Hermes UAE Limited, Emirates NBD Capital, First Abu Dhabi Bank and Goldman Sachs International are the joint global coordinators for the offering. Emirates NBD and First Abu Dhabi Bank are the lead receiving banks. Rothschild is acting as financial advisor on the offering. – TradeArabia News Service