Marka said yesterday that its shares would list on the Dubai Financial Market in September, more than four months after the subscription period for its offering closed.
In April, Marka’s IPO, which targeted a market capitalisation of Dh500 million, was 36.5 times oversubscribed, attracting Dh10 billion in subscriptions.
Yesterday it said in a statement that it would list its shares in the second week of September “after having obtained the preliminary approval from the Securities and Commodities Authority”.
Recent stock market volatility may have been a factor in the delay of the listing, according to analysts. The DFM index has experienced wild swings in recent weeks, falling to bear market territory in June before bouncing back this month, only for the builder Arabtec’s continuing woes to apply downward pressure on shares again.
“We are on track in starting the company’s operations,” said the Marka chairman Jamal Al Hai, according to the statement.
Marka’s plan is to use the IPO money to build a presence in the retail, luxury and restaurant business in the Arabian Gulf region.
“The board has put in place strategies and investment plans and a strategic plan in identifying the number and location of our first retail stores, restaurants and cafes,” Mr Al Hai said.
This sort of offering, known as a greenfield IPO, is common in other countries but has not previously been attempted in the Emirates.
A greenfield IPO is the process of raising cash to list a company that is neither in operation nor has a track record, as a shell or holding firm to then acquire existing businesses.
Last week, the company said it had been formally established as a public joint stock company, receiving final approvals from the Ministry of Economy, the SCA and the Department of Economic Development.
In May, Marka started its IPO refund process with a final share allocation to subscribers of 2.74 per cent, it said.
The founders own the remaining 45 per cent of the company.
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