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Sun 7 Sep 2014 10:26 AM

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Dubai's Emaar says malls unit public share offer to open Sept 14

Burj Khalifa developer will list the subsidiary on Dubai's main stock market on October 2

Dubai's Emaar says malls unit public share offer to open Sept 14

Dubai's Emaar Properties
will launch the initial public offer of its shopping malls and retailing unit
on September 14, and will list the subsidiary on Dubai's main stock market on
October 2, the developer said on Sunday.

The offer would be one of the largest equity sales
in the Middle East since 2008, underlining Dubai's recovery from a credit
crisis that forced many state-linked developers to stall projects, and some to
restructure debt.

Emaar will sell 1.95 billion shares or more of
Emaar Malls Group, representing not less than 15 percent of the share capital,
it said in a statement on Dubai's bourse. The mall unit's share capital was
determined at AED13 billion ($3.54 billion), it added.

The IPO will be divided into two tranches, one for
retail investors and one for institutions. Both will open on September 14, when
Emaar will announce the share price range for the sale.

The final price will be determined through a
book-building process. The retail offer will close on September 24 and the
institutional offer on September 26, Emaar said in the statement.

It aims to allocate at least 60 percent of the
shares on offer to institutions and no more than 40 percent to retail
investors. It will sell at least a 15 percent stake in the malls unit through
the IPO.

The malls unit has a net asset value of AED33.2
billion ($9.0 billion), the statement added. Its main asset is Dubai
Mall, one of the world's largest shopping centres.

Shares of Emaar dropped 1.3 percent at 0640 GMT, in
line with the Dubai bourse that was also down 1.3 percent.

Dubai's government owns about 30 percent of the
developer, which said last week it would pay a dividend of around AED9 billion to its shareholders; AED5.3 billion from the IPO proceeds and AED3.7
billion from a dividend already paid by EMG to its parent.

Bank of America-Merrill Lynch, JP Morgan Chase and
Morgan Stanley are joint global coordinators of the offer, with four other
banks acting as joint bookrunners.

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