The shopping malls unit of Emaar Properties, Dubai's largest listed builder, has priced at the upper end of analysts' expectations, setting the stage for the United Arab Emirates' biggest public offering since 2007.
Emaar Properties said on Monday that it had priced shares for its new Emaar Malls Group (EMG), at 2.9 dirhams (79 cents), valuing the firm at close to $10.3 billion. It will begin trading on the Dubai Financial Market (DFM) on Thursday.
Emaar Properties is listing 15.4 percent of EMG, in a IPO that is expected to raise $1.58 billion. The firm said that the retail tranche of the deal was 20 times oversubscribed and the institutional tranche was 30 times oversubscribed.
"The pricing corresponds to a relatively aggressive, but fair valuation of the Emaar Malls business," Mohammed Kamal, director of Equity Research at Arqaam Capital, explained to CNBC.