Emaar MGF may launch $1.7bn IPO next month

Real estate developer Emaar MGF is planning to launch its initial public offering (IPO) to raise $1.7 billion by January 2008.

"We are leaving it at the good hands of the authority, but we are expecting the IPO to happen early January," Emaar Properties chairman Mohamed Ali Alabbar told reporters here on the sidelines of India Economic Summit.

Alabbar said Emaar MGF, a joint venture of Dubai-based property developer Emaar Properties PJSC and MGF Development, would be raising $1.7 billion by diluting 10% stake.

He said the company is looking beyond real estate to do business in India.
"There is a huge opportunity in India beyond real estate such as education and hospitality. We will look at these opportunities," he said.

He also refuted claimr that most of the company's land bank is agricultural land. "Wherever we are, we do not touch the agricultural land," he added.

Emaar MGF has filed the draft prospectus for the issue with Sebi in late September. The global co-ordinators and book running lead manager to the issue are Enam Securities and DSP Merill Lynch.