Why the go ahead for the Emaar Malls Group IPO risks accelerating the DFM correction « ArabianMoney:
"Emaar Properties today announced that it has recieved permission to go ahead with the listing of 25 per cent of the equity in its Emaar Malls Group with the money mainly to be returned to shareholders as dividends. Existing shareholders will also be allocated shares ahead of the general public and financial institutions in the IPO.
However, this circa $1 billion fund raising is going to be bad news for the Dubai Financial Market that underwent a 13 per cent correction last week. Dumping large volumes of new shares onto a falling market is the classic way to accelerate selling. Basically many players will sell their current shares to buy the new ones, undermining a market which already has less demand than supply.
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'via Blog this'
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