Emaar shares fall after canceling Indian IPO, drag down Dubai index
Emaar Properties the largest Arab developer by market value, declined to its lowest since October in early Dubai trading after the company scrapped a US$1.64 billion initial public offering of its Indian unit following poor investment demand.
"Everyone expected the IPO to go through even though it would be a tough one, so it is disappointing," Stefan Schurmann, an analyst at brokerage EFG-Hermes Holding, said in a phone interview from Dubai today. "They have leverage available on a parent company level, so short-term funding is not an issue. But it is not nice for sentiment."
Emaar was down 50 fils, or 4.2%, to AED11.65 at 12:39 local time, heading for its lowest close since 18 October. The Dubai Financial Market General Index was down 1.77%. Emaar is the benchmark's biggest stock by weighting.
Emaar MGF Land, which planned to sell 102.6 million shares in India's second-biggest IPO by a real-estate company, scrapped the offering following poor investor demand. It will consider selling shares when the stock markets are more stable, it said in a statement on 8 February.
The Indian unit received bids for 40% of the shares offered after the Sensitive Index had its worst start to the year in at least three decades. A global sell-off in equities, sparked by concern that the US is headed for a recession, has reduced or halted planned share sales worldwide.
The Saudi Tadawul was down 0.31% by mid day trading. The Abu Dhabi Securities Market lost 1.52%. Source
"Everyone expected the IPO to go through even though it would be a tough one, so it is disappointing," Stefan Schurmann, an analyst at brokerage EFG-Hermes Holding, said in a phone interview from Dubai today. "They have leverage available on a parent company level, so short-term funding is not an issue. But it is not nice for sentiment."
Emaar was down 50 fils, or 4.2%, to AED11.65 at 12:39 local time, heading for its lowest close since 18 October. The Dubai Financial Market General Index was down 1.77%. Emaar is the benchmark's biggest stock by weighting.
Emaar MGF Land, which planned to sell 102.6 million shares in India's second-biggest IPO by a real-estate company, scrapped the offering following poor investor demand. It will consider selling shares when the stock markets are more stable, it said in a statement on 8 February.
The Indian unit received bids for 40% of the shares offered after the Sensitive Index had its worst start to the year in at least three decades. A global sell-off in equities, sparked by concern that the US is headed for a recession, has reduced or halted planned share sales worldwide.
The Saudi Tadawul was down 0.31% by mid day trading. The Abu Dhabi Securities Market lost 1.52%. Source
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