Emaar to float Egypt unit on Cairo exchange

Emaar Properties, the biggest developer in the Middle East by market value, said here Wednesday it intends to proceed with an initial public offering (IPO) its Egyptian unit of Emaar Misr in order to list ordinary shares on the Egyptian Stock Exchange (EGX).

Emaar said in an e-mailed statement the IPO includes a public sale to retail investors in Egypt and a private placement to institutional investors in a number of countries, including Egypt.

Emaar, whose shares are the bellwether on the Dubai stock market and which is the developer of the world's tallest tower Burj Khalifa, said Emaar Misr plans to use the net proceeds raised from the offering, together with its existing resources, to further the development of the non-residential areas of its projects under development, including primarily Emaar Square in Uptown Cairo project.

Emaar Misr, a developer of lifestyle communities in Egypt, is currently in the process of finalizing 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.

Dubai and Egypt are increasingly moving together in relation to capital markets and investments. On Mach 9, Orascom Construction, a major construction firm in Egypt listed its shares on the Nasdaq Dubai, the international capital market in the Gulf Arab emirate.