Thursday, September 27, 2007

Emaar planning India IPO to raise $1.5bn

MUMBAI: Real estate firm Emaar MGF Land plans to sell a 10 per cent
stake through an initial public offering in India, which banking
sources say may raise about $1.5 billion to make it one of India's
biggest listings.


The company is 40pc owned by Dubai's Emaar Properties and Indian real estate developer MGF Development holds close to 60pc.


Emaar MGF said that it had filed a prospectus with the Indian
regulator and would offer up to 117.4 million shares in the sale,
including a pre-IPO placement at a price to be determined through a
book-building issue.


India's market regulator takes at least a month to approve the
issue, and the company was then expected to offer shares in the
following three months, bankers said.


Sources close to the development said the company may raise about $1.5 billion depending on the market conditions.


"The pricing of the issue will depend on the market condition. If
the market rises to 18,000 or 19,000, it is a different story
altogether," a banking source said.


In July, real estate firm DLF listed after raising $2.25 billion in
India's biggest IPO. Shares in DLF, India's biggest real estate
developer, rose nearly nine percent on their debut, and have gained
nearly 30pc since then.


Home prices in India have dropped as much as 20pc this year because
of rising interest rates and a correction after prices had more than
doubled in a few years.


Gulf Daily News

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