Founders to buy 45% of Marka stock as it readies Dubai IPO
Marka, a retailer that is preparing to list its shares on the Dubai Financial Market, has started receiving equity contributions from its founders, the company’s financial adviser, CAPM Investment, said yesterday.
The founders will buy 45 per cent of Marka’s stock, the equivalent of Dh225 million, within the next few days, according to CAPM Investment.
The remaining 55 per cent stake, or 275 million shares, will then be sold to the public at the same price of Dh1 per share.
The founders are an elite group of “UAE nationals, including VIPs, businessmen and investors, along with a select group of non-local investors,” said Mahdi Mattar, the chief executive of CAPM Investment.
The IPO of UAE-based Marka, which is under establishment, will be the DFM’s first listing in five years. It will also make Marka the country’s first listed retailer.
“The 100-plus founders have high confidence in the new operations to be rolled out by Marka, which are expected to significantly benefit from the attractive growth prospects of the fashion retail and F&B [food and beverage] sectors in the UAE, in particular, and the GCC in general,” Mr Mattar said.
“Both sectors benefit from the record growth in the number of tourists visiting the country as well as the increasing demand from the locals and residents.”
No date has as yet been set for the share sale but is expected in the “forthcoming weeks”.
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Updated: March 8, 2014 04:00 AM