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Mumbai: The Indian joint venture of Emaar Properties hopes to revive its shelved initial public offering in the next 12 months if the market conditions improve, a top company official said yesterday.
In February, Emaar MGF had called off its $1.64 billion IPO, even after cutting the price twice and extending the offer as a tumbling stock market sapped investor appetite.
The company was now waiting for the market to stabilise, said Shravan Gupta, executive vice-chairman and managing director.
"We anticipate that the US market will stabilise next year and emerging markets will follow soon after," he said.
"The IPO market may present another opportunity for us to raise funds in the next nine to 12 months," he said.
Global impact
Globally, 60 IPO deals were either withdrawn or postponed during the first quarter of 2008, accounting for about $26.8 billion in unrealised proceeds, according to Thomson Financial. Indian firms managed to raise $3.7 billion from 15 deals, the data showed.
Emaar MGF yesterday tied up with Marriott International Inc to build four hotels in India for a total investment of more than $400 million.
The projects in New Delhi and Amritsar in the north, Hyderabad in southern India and Kolkata in the eastern state of West Bengal are expected to be completed by 2010 and will have a total of 912 rooms, Emaar MGF Land Ltd said in a statement.
Emaar MGF will own and develop the properties while Marriott will provide advisory and management services, it said.
Profit at Emaar Properties probably accelerated to Dh1.81 billion in the first quarter on sales of its Burj Dubai project, according to a survey of analysts.
Net income in the three months to March 31 may have risen 5.2 per cent compared with the year-earlier period, when profit was Dh1.72 billion, according to the average forecast of analysts surveyed.
In the fourth quarter, profit rose after construction costs declined as the Burj Dubai project neared completion.
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