UAE’s Emaar has terrible debut amid Middle East geopolitical risk
Dubai — Geopolitical risk in the Middle East took a toll on the debut of a stock linked to one of the strongest brands investors can find in the United Arab Emirates (UAE) market. Emaar Development, the UAE real estate developer that began trading in Dubai on Wednesday, fell 4.3%. This was the worst debut trading day since 2014 among the 10 biggest initial public offerings (IPOs) in the Middle East and Africa over that time span, according to Bloomberg data. The company is the local development arm of Emaar Properties, a company that’s 30% owned by the government of Dubai and the developer of the world’s tallest skyscraper. While the IPO was fully subscribed within half a day of the issue’s opening on November 2, neither investors nor bankers could predict the events of the following two days. That Saturday, Saudi Arabia arrested princes, billionaires and ministers as part of crackdown on corruption and blamed Iran for an attempted missile attack on Riyadh’s airport, while Lebanon’s...
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