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Emaar Development IPO seeks up to $1.5 billion

Staff Writer |
Dubai's Emaar Properties is looking to raise as much as $1.5 billion from the sale of shares in its development unit.

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The assets of Emaar Development include 49 units in Dubai's Burj Khalifa, the world's tallest tower and a number of projects in Dubai's prime districts.

The company has set an indicative price range of 5.7 dirhams and 6.9 dirhams per share for the IPO, according to a bourse statement on Thursday

At the top end of the range, the newly listed company would be valued at 27.6 billion dirham ($7.5 billion), a 14.5 percent premium to its estimated net asset value of 24.1 billion dirhams.

Emaar Properties plans to sell a 20 percent stake or 800 million shares in its real estate development business, less than expected after it had received shareholder approval to sell up to 30 percent of the unit

The company aims to distribute aggregate dividends of no less than $1.7 billion during the next three financial years, with the first post-IPO dividend to be paid in the third quarter of 2018.

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