Emaar to distribute Dh4bn dividend from real estate subsidiary IPO

Emaar shareholders approved the distribution of Dh4 billion in dividends to shareholders from proceeds of the initial public offering of its real estate development arm Emaar Development in November.

“This was a successful IPO despite [challenging] economic conditions,” Mohamed Alabbar, chairman of the Dubai-based property developer Emaar Properties told a shareholders meeting on Sunday night.

Mr Alabbar announced total dividends of Dh3,007,090,330.44, representing 42 per cent of the capital or 42 fils per share.

Dh3bn will be distributed in January, while another Dh1bn will be distributed in April following the approval of the general assembly.

The payout is being staggered due to "cashflow considerations", Mr Alabbar told shareholders. The announcement was confirmed in a note to the Dubai Financial Market on Monday.

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Emaar Development listed on the Dubai stock exchange on November 16. The developer priced its sale of 800 million shares – representing a 20 per cent stake in the company – at Dh6.03 per share, raising Dh4.8bn at the lower end of the original pricing guidance of Dh5.7 to Dh6.9 per share announced in early November. This was subsequently revised to Dh6.03 to Dh 6.70 per share.

It is the largest Dubai listing in three years since the 2014 listing of fellow Emaar Properties subsidiary Emaar Malls, which raised Dh5.8bn, and the US$4.96 billion IPO of DP World on Nasdaq Dubai in 2007.

“We are trying to strike a balance between the interests of shareholders and those of the company," Mr Alabbar said in response to questions from shareholders as to whether the IPO had unlocked sufficient value for the company. “We operate beyond [short term gains] and it is a much longer game for us.”

The company continuously “observes” the construction industry, which is “in a good place at the moment”, Mr Alabbar added.

“Contractors are always busy and there are lots of projects ongoing across Dubai.”