• Egyptian Emaar Misr’s initial public offering oversubscribed by institutional investors
  • Subscription for retail investors to begin imminently, when pricing is finalised

The initial public offering (IPO) for Emaar Misr for Development, the Egyptian Branch of Dubai’s Emaar Properties, is already oversubscribed by institutional investors.

There has been high interest from local and GCC banks, with lower levels of interest from international banks, a source involved in the IPO told MEED.

Fifteen per cent of shares have been set aside for Egyptian retail investors. Subscription for retail investors will begin when an actual price has been set. It was due to start on 16 June.

The indicative price range is now between E£3.50 ($0.46) to E£4.25 a share.

Subscription will close on 25 June and the shares will be listed on the Egyptian Exchange. Emaar hopes to raise E£2.3bn ($302m) in the IPO.

The company declined to comment on an ongoing IPO.

Emaar Misr will issue 600 million shares, representing approximately 13 per cent of the post share offer capital. The post-IPO market capitalisation is estimated to be approximately E£17.9bn.

Emaar Properties will retain a stake of around 87 per cent in the developer.

The coordinators and bookrunners are local EFG Hermes, US-based JP Morgan. The lead manager is Dubai’s Emirates Financial Services, part of Emirates NBD.

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.

Emaar Misr:

The aggregate market value of Emaar Misr’s 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 Egypt’s Mediterranean coast.

Emaar Misr’s Projects      
Project Value ($m)  Size (square metres) Stage 
Uptown Cairo  2,100 4.5m Execution
Marassi Beach Resort 1,653 6.5m Execution
Emaar Square 862 600,000 Design
Cairo Gate Mall 820 120,000 Execution
Khalifa bin Zayed City 500 2.2m Design
Mivida 386 3.8m Execution
Source: MEED Projects