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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