Should you buy into the $2.5bn IPO for Emaar malls unit next month? « ArabianMoney

Should you buy into the $2.5bn IPO for Emaar malls unit next month? « ArabianMoney:



"The $2.5 billion initial public offering for Emaar Properties’ malls division will go ahead in the middle of next month provided that the Dubai Financial Market does not see a repeat of its recent high volatility.



You could argue that holding an IPO that will increase the market capitalization of the DFM by about 10 per cent after the recent sharp correction is unwise because an oversupply of apples tends to push the price down. Investors also tend to sell-off the old apples to buy the new ones."



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