Dubai's Emaar Properties announced the price range on Thursday for the initial share sale of its Egyptian unit at below previously-indicated levels, giving an offer size of 2.55 billion pounds ($334 million) at the top of the range. The flotation will involve 600 million shares, equivalent to 12.99 percent of the company, offered at a price between 3.5 pounds and 4.25 pounds, with the final price to be decided on or around June 18, Emaar said in a bourse filing in Dubai. This range was below the 4.49 pounds which Emaar Misr said on Monday it would price the offering at, as well as the initial valuation of 4.70 pounds revealed in May which was based on a recommendation from accountancy firm Grant Thornton. Despite the revision, the listing of Emaar Misr is expected to be the largest flotation on the Cairo exchange since 2007. The Egyptian subsidiary has a portfolio of investments in Egypt worth around 53 billion Egyptian pounds ($7 billion), according to its website. Emaar Misr is expected to be listed on the Cairo stock exchange on or around July 2, the statement from Dubai's largest listed developer said. Much of the offering will be allocated to institutional investors, with 15 percent earmarked for retail buyers. The subscription period for institutions both inside and outside the North African country will start on Thursday and run until June 16, on which day retail investors will begin subscribing. The retail offer will conclude on June 25. "The level of interest shown from the investment community so far has been very encouraging and we look forward to welcoming new shareholders as long term partners in the growth of Emaar Misr," Mohamed Alabbar, chairman of Emaar and its Egyptian unit, was quoted as saying in the statement. EFG Hermes and JP Morgan are joint global coordinators of the float, with Emirates Financial Services designated a lead manager. Source: Reuters
