CAIRO, Jun 18 (Aswat Masriya) - The Dubai-based property developer Emaar announced on Thursday it will issue up to 600 million shares of its Egypt subsidiary Emaar Misr in Egypt's stock market, setting its offer price at 3.8 Egyptian pounds per share.
The property developer said in a statement to the Dubai Financial Market that at listing, Emaar Misr's market capitalisation will be approximately 17.6 billion pounds ($2.3 billion).
Emaar announced in May its intention to float 12.99 percent of Emaar Misr in Egypt's stock market. The Dubai-based Emaar will meanwhile retain its current holdings in Emmar Misr, representing 87.01 percent of the subsidiary.
The stock offering will include a public offering to retail investors in Egypt as well as a private placement to institutional investments in Egypt and other countries.
Emaar has begun offering a maximum of 90 million of its shares to retail investors on Tuesday, it said in its statement. The Egyptian public offering is due to run until June 25, next week.
The institutional offering tranche was meanwhile 11 times over subscribed at the offer price, with 510 million shares allocated to institution investors.
The company is due to list and trade on the Egyptian stock market on July 2, but the date is subject to change.
Mohamed Ali Alabbar, Chairman of Emaar Misr, said in the statement that the Initial Price Offering (IPO) is expected to be the largest on Egypt's stock market this year, describing it as an "important milestone" for his company.
"We are very pleased by the strong institutional demand and quality interest in becoming a shareholder of Emaar Misr from Western, Regional and Egyptian institutional investors, a testimony to the quality of the business, its growth profile and its management team," Alabbar said.
The company said it has appointed EFG Hermes and J.P. Morgan as the "joint global coordinators and joint book-runners" for its offer, as well as Emirati financial services PSC as the offering's lead manager.
Emaar is one of the largest foreign investors in Egypt's real estate sector.
The revenues of Emaar's Egypt subsidiary significantly rose by 119 percent in 2014, standing at 2.6 billion Egyptian pounds, Emaar had earlier said. The company's net sales were 2 billion pounds in the first quarter of 2015.