Share price has fallen since IPO
- Egypts Emaar Misr sales have reached E£3.91bn ($500m) in the first half of 2015, a 20 per cent increase on the first half of 2014
- The Mivida and Marassi projects performed above expectations
- Emaar Misrs share price has fallen 11.6 per cent since listing on 5 July
Emaar Misr, the Egyptian arm of Dubais Emaar Properties, has announced that its net sales rose 20 per cent to E£3.91bn ($500m) in the first half of 2015, compared with E£3.26bn in the same half of 2014.
It is yet to state its second quarter profits to the Egyptian Exchange.
The Mivida and Marassi projects saw particularly elevated sales. Their sales rose by 45 and 40 per cent respectively.
The upturn in sales also currently reflects the positive growth outlook and strong operations of the company, stated Emaar Misr.
The company reported a 110 per cent jump in revenues for first quarter 2015 compared to first quarter of 2014. Quarterly revenues increased to $98m, compared with $46m for the same period last year. The company saw profits rise to $22m, up from $4m in the first three months of 2014.
Trading in Emaar Misr shares began on the Egyptian Exchange on 5 July after a highly successful initial public offering (IPO). Since then the share price has fallen from the initially set E£3.80 a share to E£3.36, a decrease of 11.6 per cent. Prices did not pick up following the positive news.
Trading volumes were high through the first week, and have now reached 189 million shares traded.
The funds raised in the IPO will be used to continue developing commercial projects in Egypt, primarily Emaar Square, part of the Uptown Cairo project, the planned international marina and hotels in Marassi and Downtown area in its Mivida project, which includes both retail and office space. They will also fund pre-launch costs for the Cairo Gate project, as well as growing its landbank.
The aggregate market value of Emaar Misrs fully owned properties as of 31 December 2014 was E£23.4bn.
It also has a landbank of 10.4 million square meters in east, west and central Cairo as well as Egypts Mediterranean coast.
|EMAAR MISRS PROJECTS|
|Project||Value ($m)||Size (square metres)||Stage|
|Marassi Beach Resort||1,653||6.5m||Execution|
|Cairo Gate Mall||820||120,000||Execution|
|Khalifa bin Zayed City||500||2.2m||Design|
|Source: MEED Projects|
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