Shuaa Surges to Four-Year High on IPO Gain Bets: Dubai Mover
The stock jumped 14 percent to 1.43 dirhams at the close, the highest since April 2010, in more than seven-times the three-month average daily volume. It rose 15 percent yesterday, and has added about 150 percent in the last 12 months. The DFM General Index fell 0.1 percent.
“The Emirates REIT IPO is being done by Shuaa and it may get to work on the Emaar malls IPO as well,” Hisham Khairy, Dubai-based head of institutional trade at Mena Corp. Financial Services LLC, said by phone. “There is some talk about a possible takeover” of Shuaa, he said.
Shuaa and Emirates NBD Capital are joint bookrunners of Emirates Reit’s share sale. Emaar Properties PJSC, (EMAAR) the Dubai-based developer of the world’s tallest tower, has hired Morgan Stanley as an adviser to list its shopping malls unit, potentially offering other investment banks an opportunity to join in the sale process.
Shuaa is a possible takeover target because its shares have been “hit hard” since 2008, Joice Mathew, head of research at United Securities in Muscat, said in an e-mail. The stock sank to 55 fils at the end of 2012 before rebounding last year.
A spokesman for Shuaa declined to comment when contacted by phone today.
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