Saudi Arabian retailer Fawaz Abdulaziz Alhokair, which franchises brands such as Zara and Marks and Spencer in the kingdom, is aiming to raise $2 billion by launching an initial public offering (IPO) of its mall unit, it was reported on Monday.
A financial adviser handling the 30 percent stake for the sale Arabian Centres mall unit will be appointed by the end of 2014, Muhanad Awad, chief executive officer of FAS Capital, the financial and investment arm of Fawaz Alhokair Group, told Bloomberg on Sunday by phone.
The IPO is likely to be listed on the Saudi Stock Exchange in 2016, he added.
Arabian Centres consists of 15 malls, including Jeddah’s Mall of Arabia, with another nine under construction. There is also one based in Egypt.
A similar move by Dubai’s Emaar to IPO its malls unit raised $1.6 billion in September.
“The offering will be similar to what Emaar Malls did, maybe a bit bigger. We’ll raise about $2 billion or a little more,” Awad was quoted as saying.
The group listed its fashion subsidiary – Alhokair Fashion Retail – in 2006.
Follow us on
