Feb. 11 (Bloomberg) -- Deyaar Development PJSC dropped the most in two weeks after Dubai’s second-largest publicly traded property company said it’s looking at reducing capital.
The shares lost 3.8 percent, the most since Jan. 26, to 1.27 dirhams at the close in Dubai. They fell to an intraday low of 1.21 dirhams as volumes climbed to more than two times the three-month daily average. The shares have more than tripled in the past 12 months.
The board of Deyaar, which is controlled by Dubai Islamic Bank PJSC, will meet on Feb. 13 to discuss restructuring capital, the company said in a statement to the bourse, without providing further details. The company will also consider allowing non-Gulf nationals to buy its shares.
“The capital restructuring has come as a surprise to investors” and the statement to the bourse “lacks clarity,” Harshjit Oza, assistant director of research at Cairo-based Naeem Holding, said by phone. “It’s panic selling.”
The shares have surged in the past year as earnings quadrupled to 154.4 million dirhams ($42 million) amid a resurgence in Dubai’s real estate market, where prices had more than halved from their 2008 peak.
To contact the reporter on this story: Sarmad Khan in Dubai at email@example.com
To contact the editor responsible for this story: Samuel Potter at firstname.lastname@example.org