Emaar to list 15 per cent of mall group

31 August 2014

Developer confirms planned initial public offering

Dubai property developer Emaar Properties will list at least 15 per cent of its shopping mall business in an initial public offering (IPO) on the Dubai Financial Market (DFM).

The developer confirmed the much-awaited listing of Emaar Malls Group (EMG) in a note to the DFM on 31 August.

The developer, which built the emirate’s landmark Dubai Mall, said it would sell existing shares in the group held by Emaar Properties and its wholly owned subsidiary Emaar Properties Holding and will not be issuing any new shares.  

Individual investors will be able to buy 30 per cent of the offering while 70 per cent will be offered to institutional investors, with 10 per cent targeted for preferential allocation to existing Emaar Property shareholders as of 10 September.

The listing sets a new benchmark for the UAE’s capital markets as it combines institutional and retail shareholders for the first time in the same offering on the DFM.

Approximately AED5.3bn ($1.44bn) from the IPO proceeds will be paid out as a shareholder dividend, according to Emaar.

Added to a total of AED3.7bn received before the IPO, the total dividend to be paid to shareholders is approximately AED9bn.

Mohamed Alabbar, chairman of Emaar Properties, said in a statement: “The intention to generate proceeds for Emaar Properties by listing EMG shares on DFM will continue the established trend of returning funds from the group to shareholders.”

Emaar won regulatory approval to sell up to 25 per cent of its shares in May this year.

Joint global coordinators of the offering are Bank of America Merrill Lynch, JP Morgan and Morgan Stanley. Joint bookrunners are EFG Hermes UAE, Emirates Financial Services, HSBC Middle East and the National Bank of Abu Dhabi.

Emaar’s mall business comprises four shopping malls, 30 community shopping centres and other retail outlets.

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