Emaar Misr jumps on listing day amid heavy volumes
This was the largest flotation on the Egyptian exchange since 2007
Dubai: Shares of Emaar Misr, an Egyptian unit of Dubai-listed Emaar Properties, jumped nearly 4 per cent on its first day of trade amid heavy volumes.
Emaar Misr shares ended 3.68 per cent higher at 3.94 Egyptian pounds, with shares worth 309 million Eygptian pounds having been traded.
The company raised $300 million (Dh1.1 billion) in this flotation, making it the largest since 2007 on the bourse.
“The Emaar Misr IPO [Initial Public Offering] has truly set a benchmark for the Egyptian Stock Exchange due to its outstanding success in encouraging foreign investment into the country. The overwhelming response from international investors highlights confidence in Egypt and the country’s significant potential for growth,” Mohammad Al Abbar, chairman of Emaar Misr, said in a statement.
The share sale was oversubscribed 11 times for the institutional tranche and oversubscribed 36 times for the public tranche.
Emaar Misr intends to use the proceeds to further the development of its commercial properties in its flagship development Emaar Square, Mivida Downtown and the Marina in Marassi, in addition to growing its landbank and funding the pre-launch expenditure of Cairo Gate.
