Emaar Properties PJSC, which has the government of Dubai as its main shareholder, raised $1.31 billion (4.82 billion dirhams) from the sale of a 20 percent stake in Emaar Development PJSC. It´s the largest sale of shares since $1.6 billion offer in 2014 of Emaar Mall PJSC.
The Dubai-based developer sold 800 million shares at 6.03 dirhams a share, according to obtained statement by Bloomberg. About 6.2 percent of the shares were sold to individual investors and 93.8 percent to qualified investors.
“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,” Emaar Properties Chairman Mohamed Alabbar said
Emaar Properties shares have declined 5% in the past two weeks. Nevertheless, they are still up 13 percent since it initially announced the intention to sell shares of Emaar Development in June. Emaar Development shares are planned to be listed on the Dubai Financial Market on November 22. At least $ 1.7 billion will be paid out on dividends over the next three years.
After Dubai allowed ownership of properties to foreigners in 2002, Emaar Properties spearheaded a building boom in the emirate. Additionaly, Emaar Properties could boast with good economic results. Third-quarter net income increased 32 percent to 1.51 billion dirhams with more than 24,000 developments under construction.