Emaar Misr shares tranche for retail investors 36 times oversubscribed

Adam Bouyamourn

The tranche of shares of Emaar Misr allocated to retail investors last week was 36 times oversubscribed, according to an adviser on the deal.

The Egyptian unit of Dubai listed developer Emaar Properties issued 600 million shares at 3.8 Egyptian pounds (Dh1.83) per share, with a total value of 2.2 billion pounds of share capital.

This values the company at 17.5bn pounds, according to Ahmed Al Guindy, head of investment banking at EFG Hermes, making Emaar Misr the fourth largest company on the Egyptian Stock Exchange by market capitalisation.

Ninety million shares were allocated to retail investors, who placed orders for more than 3.2 billion shares. The tranche of 510 million shares allocated to institutional investors was 11 times oversubscribed last week.

The company currently has no plans to increase the allocation of shares to retail investors, said Mr Al Guindy, who advised on the deal.

Emaar Properties plans to retain at least 87 per cent of the shares of its Egyptian arm, according to wire reports.

Emaar Misr plans to increase its Egyptian land portfolio. It is bidding on two plots of land west of Cairo with a combined area of 600 acres, according to local media.

In Dubai, Emaar Properties shares closed down 1.1 per cent. ​

abouyamourn@thenational.ae

Follow The National's Business section on Twitter