Dubai: Emaar MGF, a joint venture between developer Emaar and MGF Development, is considering raising funds through an initial public offering (IPO), despite a failed attempt last year.
"India is one of the key growth markets for Emaar and based on regulatory approvals and dependent on market opportunities, Emaar MGF continues to evaluate various fund-raising options including an IPO," Emaar MGF said in a statement on the Dubai Financial Market website.
V.K. Gomber, group CEO of Emaar MGF, stressed that while an IPO is being considered it is still in the preliminary stages.
The IPO strategy for Emaar MGF was announced in 2008. Emaar MGF had to withdraw plans to raise almost $2 billion (Dh7.35 billion) in February 2008 after it received a lukewarm reaction from investors.
Stock exchange data at the time showed the IPO was subscribed 0.39 times, making the decision to withdraw "helpful in the long-run," Shravan Gupta, executive vice-chairman and managing director of Emaar MGF, said.
Emaar MGF is currently developing a number of residential and commercial projects in India.
However, an IPO in India requires detailed information to be submitted to the Securities and Exchange Board of India and this must then be approved.
As the onset of the global financial downturn shook investor confidence, the volume of IPOs dropped sharply in the first quarter of 2009.
IPO activity in the Middle East and North Africa region slumped 87 per cent during the first half of this year, compared to the same time 2008.
© Gulf News 2009
