Emaar IPO Flop Pops Red Flag for Egypt Bet on Property Boom - Bloomberg Business:
"The Emaar Properties banners adorning the facade of the Cairo Stock Exchange radiated confidence as shares started trading in Egypt’s biggest initial public offering since the 2011 Arab Spring. Three weeks and a 7.4 percent decline later, investors are lining up to get out.
Egypt needed the IPO of Emaar Properties PJSC’s local unit to be a winner to rebuild investor confidence in its property market after mega-projects feted by President Abdel-Fattah El-Sisi stalled. About a month before the company’s stock-market debut on July 5, the exchange changed its rules to allow newly listed companies like the luxury-home builder to join its benchmark index.
In the event, Emaar Misr for Development SAE fell more in the first week of trading than any Egyptian debut stock since 2008. Some investors balked at a valuation that didn’t reflect the dim outlook for high-end home demand, or the government’s growing preference for creating partnerships with developers, making it harder for companies to buy land and finance development projects."
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