DUBAI - The real estate development business of Emaar Properties, which is being listed in an initial public offering (IPO) in Dubai, is expected to be valued at 24 billion dirhams ($6.5 bln), two people familiar with the deal said.
The valuation is based on the assets Emaar plans to inject into the listed vehicle, the sources said. In a bourse filing last week the company listed the assets it plans to transfer to the new vehicle.
An Emaar spokeswoman said the estimate is only a net asset projection by a third-party valuer.
"The valuation of the company will be determined during the IPO process," she said.
The assets of the listed business will include 49 units in Dubai's Burj Khalifa, the world's tallest tower. They also include several mixed-used projects under construction and joint ventures, the exchange filing showed.
The sources declined to be identified because the details are not public.
Emaar, the interests of which span hotels, entertainment and shopping malls, announced in June that it planned to float 30 percent of its real estate development business in Dubai to maximise value for shareholders.
The listing could happen in November, Emaar Chairman Mohamed Alabbar told Al Arabiya TV in June. It is expected to be the first listing on the Dubai Financial Market in nearly three years.
Bank of America Merrill Lynch, First Abu Dhabi Bank and Goldman Sachs are among banks managing the IPO, sources have told Reuters. ($1 = 3.6726 UAE dirham)
(Editing by Susan Fenton and David Goodman) ((Saeed.Azhar@thomsonreuters.com; +65-64035664 ; Reuters Messaging: email@example.com))