Emaar Misr Investors Offer to Sell 81% of IPO Back to Developer

An overwhelming majority of shareholders in Emaar Misr for Development SAE have asked to sell their shares back to the Egyptian developer at the price at which the stock was first sold to the public.

Investors tendered about 487 million shares, or 81 percent of the shares sold in the company’s initial public offering, by a Monday deadline, according to the Egyptian Exchange. The Egyptian unit of Dubai’s Emaar Properties PJSC plans to repurchase 90 million shares.

“The premium offered in the buyback was compelling enough for some investors to try to cut their losses and for others to take advantage of a quick profit opportunity,” said Rami Sidani, a Dubai-based portfolio manager at Schroder Investment Management Ltd.

Emaar Misr fell to the lowest in three weeks Monday after two senior officials resigned the previous day. The luxury real estate developer said its heads of investment and development quit to pursue new opportunities.

The shares declined 2.1 percent at 3.35 Egyptian pounds at the close of trading in Cairo. Emaar Misr priced the stock at 3.80 pounds to raise 2.28 billion Egyptian pounds ($291 million) in the country’s biggest IPO since the 2011 Arab Spring.

Emaar Misr will buy back the shares on a pro-rata basis because demand for the buyback exceeded the 342 million-pound fund it set up to stabilize its shares after they started trading.

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