Emaar authorises another share buy-back scheme

The shareholders of Emaar Properties who ratified the move to split the nominal value of the company's share from Dh10 to Dh1 at an extraordinary general meeting (EGM) yesterday, also authorised another share buy-back scheme for a maximum of 10 per cent of the shares, subject to necessary approvals.

Yesterday's EGM was held after last week's scheduled meeting failed to obtain the required quorum. Shareholders also authorised the board to consider secondary listing of the company shares on regional and international financial markets in order to widen the shareholders' base.

The shareholders also approved the board's amendment of the articles of association of the company to reflect the new nominal value of the share as required by the Federal Commercial Companies Law No. (8) of 1984.

The share split will increase the number of shares from 265 million to 2.65 billion and hence improve the liquidity in the market. This, according to experts, will push the market price up from the present levels to a more realistic level.

Emaar shares which closed at Dh55.25 in yesterday's trading touched a high of Dh55.8 and a low of Dh54.65. The counter witnessed a trading of 2.166 million shares for a total value of about Dh120 million.

While the 52-week high of Emaar is Dh58, the 52-week low was Dh23.2.

Being one of the largest capitalised stocks on the Dubai Financial Market (DFM), any decision regarding the company is bound to have its own share of impact on the whole stock market.

The well-diversified Emaar Group has several subsidiaries and associate companies under its fold, the important among them being Dubai Bank and Amlak Finance.

Moreover, Emaar boasts the highest number of expatriate shareholders among all companies listed on DFM.

The company which has opened up to the extent of 20 per cent for foreign investment, launched a share buy-back scheme more than two years ago with a view to supporting the market price of the shares.

In the last few weeks the company is said to have attracted investments from Saudi Arabia and Kuwait.

With several property development projects in hand and plans being completed for the construction of the world's tallest building - Burj Dubai which will have the world's largest mall, the interest in investing in Emaar shares is increasing steadily.

The foreign holding in Emaar is still far off the 20 per cent mark.