Emaar Properties schedules malls IPO

Emaar Properties schedules malls IPO

Published: September 1, 2014

Long-awaited listing of Emaar Malls Group will take place on September 10.

Emaar Properties, a United Arab Emirates-based real estate group, has confirmed details of the long-awaited initial public offering (IPO) of its malls business.

Emaar Malls Group, which owns four malls and 30 shopping centres including its landmark property The Dubai Mall (pictured), will join the Dubai Financial Market on September, with at least 15% of its business being listed.

Some 70% of the shares will be offered to institutional investors, with the remainder earmarked for individuals. No new shares will be offered as part of the IPO, and Emaar Properties will use about AED5.3bn (US1.44bn) of the proceeds as a dividend for group shareholders.

“The IPO is a milestone for the development of the UAE capital markets as, for the first time, it combines institutional and retail shareholders in the same offering on the Dubai Financial Market,” said Mohamed Alabbar, Emaar Properties’ chairman, in a statement announcing the IPO.

Bank of America Merrill Lynch, JP Morgan and Morgan Stanley are joint global coordinators for the deal. Those banks are also acting as joint bookrunners, alongside EFG Hermes, Emirates Financial Services, HSBC and National Bank of Abu Dhabi.

Emaar Malls saw revenues rise by 13% during to first half of the year, to AED1.25bn. The Dubai Mall accounts for about 80% of its income.