Mohamed Alabbar, chairman of Emaar Properties, speaks during a function. (Reuters filepic)

LONDON: A Dubai property developer managed to pull off the Middle East’s largest initial share offering this year, but only after it was almost derailed by the sweeping arrests in neighbouring Saudi Arabia, where authorities say they’re rooting out corruption.

Advisers to Emaar Properties PJSC scrambled to complete a US$1.3bil (RM5.4bil) share offering in its United Arab Emirates development business after local investors reneged on hundreds of millions of dollars in demand on the last day of the sale, according to sources.

The retreat was triggered by Saudi Arabia’s unexpected crackdown, they said.

In the end, Emaar Development PJSC was able to pull off the listing within the original price range, with backing from some prominent regional investors and global funds, making it the largest deal in the Middle East this year.

“We are pleased to have received significant retail and institutional support for our IPO, the first in Dubai in three years,” a spokesperson for Emaar Development said in an emailed response to questions.

“Subscriptions to our IPO indicate that investors are excited about the prospects of Emaar Development, particularly our increased sales and performance, and our expected dividend yield of 8.6% for the next three years, which is higher than our competitors, and likely to increase in the future.”

The unprecedented Saudi crackdown this month has seen prominent royal family members and billionaire investors detained. The shock-waves wiped almost US$19bil of value from exchanges across the six-member Gulf Cooperation Council countries last week. — Bloomberg