DUBAI, 20th May, 2015 (WAM) -- The Egyptian subsidiary of Emaar Properties, Emaar Misr for Development S.A.E, today announced its intention to proceed with an initial public offering and to apply for admission of Emaar Misr?s ordinary shares to be offered in connection with the IPO for listing and trading on the Egyptian Stock Exchange.
It is intended that the offering will comprise a public offering to retail investors in Egypt, and a private placement to institutional investors in a number of countries, including in Egypt. Emaar Misr plans to use the net proceeds raised from the offering, together with its existing cash resources, to further the development of the non-residential areas of its projects under development, including primarily Emaar Square in Uptown Cairo project, the planned international marina and hotels in the Marassi project, and Downtown area in the Mivida project, comprising both retail and office space. The company also intends to use a part of the net proceeds from the offering to fund pre-launch expenditures and costs in relation to the development of Cairo Gate, as well as selectively growing its land bank through the potential acquisition of select land plots that match the investment criteria of Emaar Misr. Emaar Properties will retain its current holdings in Emaar Misr, which is expected to represent a minimum of approximately 87 percent of Emaar Misr?s total post-offer share capital. Emaar Misr is currently in the process of finalising the required corporate approvals with regards to the offering, and subsequently, the company will seek the regulatory approvals from Egyptian regulators for the offering and the admission of shares to listing and trading on the EGX. The company has achieved cumulative net sales of EGP23.9 billion since inception up to 31st March 2015, of which EGP7.1 billion of net sales were in 2014 and EGP2.0 billion in Q1 2015. In 2014, the company recorded impressive revenues growth in 2014, 119 percent year-on-year, to EGP2.6 billion and a gross margin of 29.8 percent. The company?s land bank of 15.4 million square meters is distributed among four prime locations strategically in East, West and Central Cairo as well as Egypt?s Mediterranean coast. Mohamed Alabbar, Chairman of Emaar Properties, said, "The IPO of our subsidiary Emaar Misr marks a significant development for this pioneering business in Egypt 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. "The injection of new capital will allow Emaar Misr to continue to pursue new growth opportunities and further progress its landmark developments. We are committed to achieving sustainable growth for our businesses and delivering value to all of our shareholders," Mr. Alabbar added. He said, "Emaar Misr has become a leading developer of premium lifestyle communities in Egypt in a short period of time and is currently well positioned for continued shareholder value growth with a unique portfolio of projects. The track record of success creates a platform for future achievements for Emaar Misr and we look forward to witnessing and continuing to play a role in this journey."Copyright Emirates News Agency (WAM) 2015.
