The real estate sector went slightly down, with the DFM Real Estate Index and Abu Dhabi Real Estate Index underperforming the broader measures on the two exchanges. There is evidence of a slowdown in the real estate space, particularly in the finished property segment. There is a possibility that this slowdown is a result of the increased regulations in the market.
Last month the Emaar Malls Group initial public offering took centre stage. The IPO was 30 times oversubscribed for the institutional tranche and more than 20 times oversubscribed for the individual one. The offer was priced at AED2.90 per share, at the top end of the price range, and on the first day of trading closed up 12%. The IPO market in the UAE is now gaining traction and more companies are expected to list, adding further depth and liquidity to the bourses.
Apart from Emaar Malls Group, Marka was the other listing during the month and future possible IPOs include Amanat Holding, Al Habtoor Group, Ithmar Capital and Damac, which should create further depth and liquidity in the market.