Shares in Emaar Properties gained yesterday ahead of a crucial shareholder meeting on Monday, in which investors are expected to approve a Dh9 billion dividend.
Shares of the Burj Khalifa developer jumped 3.6 per cent to Dh11.30 on the Dubai Financial Market.
Dubai’s index, by comparison, rose 1.4 per cent to 4,630.13 points.
“It’s clear that investors are excited to get access to the 11 per cent dividend yield,” said Tariq Qaqish, the head of asset management at Dubai-based Al Mal Capital.
Shareholders are expected to gather at Emaar's ordinary general meeting to approve a special cash dividend of Dh9bn, the Dubai developer said in an emailed statement yesterday.
The amount was raised from the Dubai developer’s initial public offering of its retail business, Emaar Malls Group, which listed last month.
Emaar raised Dh5.8 billion from investors amid massive demand.
“The first impact is that Dubai government will be the main beneficiary as it holds a significant ownership in Emaar, hence it will access a sizable chunk of the dividend,” Mr Qaqish said.
“The second impact is that investors of the company, which is widely held by foreign and local individuals and entities, will be getting a decent amount of cash on their hands,” Mr Qaqish added.
“Some of that cash will be routed back to the market and hence the dividend counts as a significant catalyst towards investor sentiment and interest in the UAE bourses,” he said.
Emaar’s OGM will be held at 5pm at The Address Dubai Mall Downtown.
If the meeting falls short of quorum, the next meeting will be held at 5pm on Monday, at the same venue.
If approved, total cash dividends will have amounted to more than Dh17.12bn, which includes the payout in cash and shares provided for Emaar’s 2013 performance.
In April, Emaar declared a dividend of Dh8bn, including 15 per cent cash dividend, equivalent to about Dh975 million, and 10 per cent bonus shares, or 650 million shares, valued at about Dh7.12bn for 2013.
halsayegh@thenational.ae
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