Dubai – Mubasher: Emaar Properties is forecasted to offer shares in its Emaar Development at 10% to 20% of the unit’s net asset value, three sources told Bloomberg.

This premium percentage represents an offer price of AED 6.63 to AED 7.23 per share.

The lead managers on the initial public offering (IPO) have estimated the fair value of Emaar Development at between AED 26 billion and AED 33 billion, the sources highlighted.

Emaar Properties will sell 20%, or 800 million shares of its real estate development firm, starting 2 November.

The sale will close on 13 November for individual investors and on 15 November for institutions.

Mohamed Alabbar, chairman of Emaar, anticipated that Emaar Development’s listing on the Dubai Financial Market (DFM) will boost the true value of the real estate sector in Dubai.

Trading on Emaar Development’s stock is expected to start on 22 November, Alabbar noted.

On 22 October, Emaar said that the unit had a net asset value at AED 24.1 billion, or AED 6.025 per share at the end of September, according to Bloomberg calculations.

The Dubai-based real estate company is expected to achieve cash flows of AED 18 billion from its cumulated sales over the coming four years.