SHUAA Capital has arranged the purchase of a stake equal to 5.7 percent of Emaar Properties on behalf of Kuwaiti investors. The transaction is valued at 375 million Emirati dirhams ($102 million) based on the latest closing price of Emaar Properties on the Dubai Financial Market.
The shares were held by Emaar Properties as part of its treasury shares program established last year. SHUAA Capital stated that it acted as the sole underwriter for the shares and that the stake was purchased by investors primarily from Kuwait, in a single purpose company, Emirates Opportunities 1 Limited.
The transaction was co-managed by Al-Ahlia Investment Company and Gulfinvest, two well-known financial institutions based in Kuwait. This transaction is the latest step in a plan by Emaar to expand its shareholding base to include Gulf Cooperation Council (GCC) investors. Further plans are underway for Emaar to broaden its shareholder base internationally as it considers the merit of a secondary listing on an international stock exchange in an effort to raise its profile and eventually tap into the international capital markets.
According to SHUAA Capital research, Emaar shares are trading at more than 30 percent discount to the United Arab Emirates (UAE) market and at current prices translates into 9.6 and eight times projected 2003 earnings of Dh 2.5 per share, and 2004 earnings of Dh three percentper share respectively. Its current price also reflects a dividend yield of nearly five percent compared to three percent for other companies in the UAE.
Established in 1979, SHUAA Capital is a full-fledged investment bank licensed by the UAE Central Bank and offering a broad range of financial services and products. These include underwriting of securities and other corporate finance activities, investment advisory services, fund and portfolio management and brokerage of local, regional, and international securities. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
