Dubai: The current price level in Emaar Properties could act as an entry point for long-term investors, analysts said.
“The weakness in Emaar Properties will be a good point for entry for investors with a long-term horizon and there unlocking of value will start once Emaar Mall’s shares get listed,” said Tariq Qaqish, head of asset management, Al Mal Capital, who manages a portfolio of Dh500 million.
Emaar shares have shed 6 per cent since September 1. “The retail investors started exiting Emaar Properties to build cash cushion for Emaar Mall IPO,” said Qaqish.
The developer of the world’s tallest tower will start selling at least 15 per cent of shares in Emaar Malls Group starting Sept. 14, and list them in Dubai on Oct. 2. The share sale is touted to be one of the biggest after the credit crises of 2008, when many companies were forced to restructure debts and stall projects.
At least 70 per cent of the Emaar Malls offering will be allocated to qualified institutional investors and 30 per cent to individuals. A minimum 10 per cent will be earmarked for Emaar shareholders as of Sept. 10, while the Emirates Investment Authority reserved 5 per cent of the offering allocated to institutions.
“Another rumour that weighed on the market was that Arabtec’s ex-CEO may be reducing stake,” said Qaqish. Arabtec’s former chief executive officer Hasan Ismaik owns about 28 per cent in the company.
Senior management changes at Arabtec led to the benchmark index shaving off 20 per cent of its value in June.
