Dubai developer Emaar Properties intends to proceed with an initial public offering (IPO) for its wholly owned Egyptian subsidiary Emaar Misr for Development.

It will apply to be listed on the Egyptian Stock Exchange.

Up to 600 million shares in Emaar Misr, about 13 per cent of Emaar Misr’s post-offer share capital, will be offered. The offer price is yet to be determined.

The shares will be available to retail investors in Egypt and be offered privately to institutional investors in a number of countries, including Egypt.

Emaar Misr will use the funds raised for its Egyptian projects, and to grow its land bank.

The company has a land bank of 15.4 million square metres focused in east, west and central Cairo as well as Egypt’s Mediterranean coast.

In 2014, the company recorded revenue growth of 119 per cent, to E£2.6bn ($341m) and a gross margin of 29.8 per cent. Its projects were valued at £23.4bn.

Once Emaar Misr has secured corporate approvals for the listing, it will seek approval from Egyptian regulators.

“The IPO of our subsidiary Emaar Misr marks a significant development…and represents an attractive opportunity for prospective investors to invest in one of the largest and fastest growing real estate markets in the Middle East and North Africa,” said Mohamed Alabbar, chairman of Emaar, in a press release. “The injection of new capital will allow Emaar Misr to continue to pursue new growth opportunities and further progress its landmark developments.”

Local EFG Hermes and US-based JP Morgan are the bookrunners.

Egypt has been the most active Middle Eastern country for IPOs in 2015, as reforms and investment increase market confidence.

Local Orascom raised $185m in March after listing two subsidiaries.

The Egypt Stock Exchange was given a boost this week by a decision to freeze plans for a proposed 10 per cent tax on capital gains following criticism from investors. The index gained 6.2 per cent on the day of the announcement.