Shares of the retail division of Dubai’s Emaar Properties have surged in first trading after an initial public offering that highlighted a return of investor confidence in the Gulf market.

The IPO of Emaar Malls Group – which owns one of the world’s largest shopping centres, the Dubai Mall – was aimed at raising $US1.58 billion ($A1.71 billion) but was 30 times oversubscribed.

It was the largest IPO in the United Arab Emirates since the global financial crisis hit the country in 2009, causing a drought in flotations.

Sold ahead of flotation on the Dubai exchange at the top offered price of 2.9 dirhams ($US0.79), Emaar Malls Group shares jumped 20 per cent to around 3.5 dirhams on opening, reflecting a huge pre-trading demand.

It ended the first day of trading slightly lower at 3.25 dirhams, 12.07 per cent up from the original price.

The pricing gave the group a market capitalisation of approximately 37.7 billion dirhams, it said in a statement posted at the Dubai Financial Market website.

The group offered the shares for sale over two weeks starting September 14.

Emaar Malls’ order book was oversubscribed more than 30 times for the institutional tranche of investors and more than 20 times for the individual tranche.

The final allocation was around 70 per cent for institutional investors, with the remainder allocated to individuals, the group said.

AFP