The initial public offering of the newly formed Emaar Malls Group (EMG), the hospitality and retail unit of Emaar Properties, was heavily oversubscribed at the top of the proposed range of Dh2.90 per share, reflecting the overwhelming investor response to the largest IPO in the Gulf since 2008.
The tranche of shares allocated to institutional investors was oversubscribed more than 30 times, while retail investors placed orders worth over 20 times the amount of shares available to them, Emaar said in a statement on Monday.
Based on the offer price, EMG’s market capitalisation at listing will be approximately Dh37.7billion. The company has offered two billion shares, representing 15.4 per cent of the share capital taking the total value of shares sold to Dh5.8 billion.
The property developer said the order book was over 30 times oversubscribed for the institutional tranche and over 20 times for the individual tranche at the top of the price range. The final allocations were approximately 70 per cent to institutional investors and 30 per cent to individual investors.
Mohamed Alabbar, Chairman of Emaar Malls, said the landmark initial public offering of EMG has been successfully received by both institutional and individual investors.
“EMG has performed very well across the business in the last five years and we firmly believe that our prominence within the Mena region’s fertile retail sector, alongside our world-famous assets and experienced management team, is a potent combination which will support the company’s future growth. We welcome all new shareholders as we enter a new phase in the development of the company.”
Listing and trading on Dubai Financial Market is expected to commence at 10am on October 2. EMG shares, with a market value of Dh37.7 billion upon listing, will become the third-largest stock on the Dubai Financial Market. It is the largest IPO in the Gulf since Saudi Arabian Mining Co raised $2.47 billion from its flotation on the Saudi stock exchange in July 2008, and the largest in the UAE since port operator DP World’s $4.96 billion offering in 2007.
DFM’s benchmark stock index is the second-best performer globally, rising 48 per cent this year, prompting share sales by companies such as Marka, which started trading last week.
Bank of America Merrill Lynch, JPMorgan Chase & Co and Morgan Stanley were the joint global coordinators and bookrunners on the deal. HSBC Holdings, EFG-Hermes Holding, National Bank of Abu Dhabi, Emirates NBD, Emirates Financial Services and Rothschild also helped.
EMG is a leading owner and operator of shopping malls in Dubai, with total gross leasable area of 5.9million square feet and an occupancy rate of 95 per cent. Apart from its flagship Dubai Mall, it owns a regional malls Dubai Marina Mall and other outlets- By Issac John, firstname.lastname@example.org.© Copyright - Khaleej Times