Mohamed Alabbar, the chairman of Emaar Development, the build-to-sell (BTS) property development business of UAE-based Emaar Properties, on Wednesday rang the market-opening bell to celebrate the listing of its shares on the Dubai Financial Market (DFM).

The shares of Emaar Development were priced at Dh6.03 ($1.64) per share, within its initial price range, giving the company a market capitalisation of Dh24.1 billion ($6.56 billion) at the time of listing. The company is now trading under 'Emaardev.'

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

On the successful listing, Alabbar said: "Today is a transformative day for Emaar Development, and marks an important next step in our work of shaping cities of the future."

"Already a flagship brand and a market leader in Dubai, our successful IPO demonstrates that regional and international investors are excited by our proven business model; specifically, our backlog of Dh41 billion; our high cash flows; and our targeted dividend yield of 8.6 per cent for the next three years, which the company believes is higher than our competitors, and expected to increase in the future," he stated.

"Additionally, today marks a milestone for the DFM, a maturing financial centre well-positioned to benefit from Dubai’s position as a global investment hub. I would like to express my gratitude to the Securities and Commodities Authority and the Dubai Financial Market for their excellent support and assistance during the IPO process," remarked Alabbar.

"We are confident that this is just the beginning of a bright future for Emaar Development and our shareholders," he added.

BofA Merrill Lynch, EFG Hermes UAE, Emirates NBD Capital, First Abu Dhabi Bank and Goldman Sachs International are the joint global co-ordinators for the offering. Emirates NBD and First Abu Dhabi Bank are the lead receiving banks.

A major player in the region, Emaar Development is behind iconic freehold master-planned communities in Dubai including Emirates Living, Downtown Dubai, Dubai Marina and Arabian Ranches, and has delivered over 34,500 residential units since 2002.

The company plans to launch approximately 50,400 units over the next five years with an average annual unit sales target of 10,000 units and a targeted overall gross profit margin of 40 per cent, in line with its historical track record.-TradeArabia News Service