Emaar Malls Group to be first of several subsidiaries to be listed
The developer says it has received approval from the UAEs Securities & Commodities Authority to sell up to 25 per cent of its equity in Emaar Malls Group.
The anticipated funds raised from the proposed IPO will be primarily distributed as a dividend to the shareholders of Emaar Properties. The timing of the public offering and listing will be announced at a later date.
The shareholders of Emaar Properties will get a priority right to subscribe for shares separately from the shares allocated to financial institutions and the general public.
The secondary public offering is part of Emaars strategy to break up the company and allow its fastest-growing subsidiaries to be independently managed.
Profiting from rising visitor numbers to Dubai, Emaar Malls Group is one of the fastest-growing divisions of the company. The entity includes major shopping destinations such as Dubai Mall, Dubai Marina Mall, Souk al-Bahar and Gold & Diamond Park. In 2013, the unit recorded revenue of AED2.84bn, a yearly increase of more than 20 per cent. That represents just over a quarter of the companys total revenues of AED10.33bn.
The Malls business is one of our high-performing subsidiaries, and the proposed listing on DFM will enable the business to achieve its true potential, said Mohamed Alabbar, Chairman of Emaar Properties. We are thankful to the UAE Ministry of Economy and the Securities & Commodities Authority for their support, reflecting their long-term vision to strengthen the business environment of the country.
The positive economic indicators of Dubai, led by its status as a global hub for business and leisure and the massive infrastructure development in preparation for hosting the World Expo 2020, are growth drivers for our malls and retail business. The planned listing on DFM will also benefit from the UAE entering the emerging market index of MSCI.
In March, Emaar said it was looking to raise between AED8bn ($2.18bn) and AED9bn through a share listing of up to 25 per cent of its shopping malls and retail subsidiary.
The developer is targeting more than 100 million visitors at Dubai Mall in the next three to four years, compared with 75 million in 2013, and has plans to widen its fashion and lifestyle offerings through the expansion of the malls Fashion Avenue by 1 million square feet.