Dubai-based developer Emaar Properties has received approval from the authorities to list shares in its retail and malls division on the Dubai Financial Market.
Emaar announced this morning that it had received long awaited approval from the Securities and Commodities Authority to float 25 per cent of its shopping malls subsidiary Emaar Malls Group – estimated to be worth some Dh9 billion.
Emaar said that it would distribute the money raised from the listing as a dividend to shareholders. It also said that existing shareholders would be offered a “priority right” to subscribe to shares, the company announced in a statement to the Dubai bourse.
The news has been designed to allay fears from some Emaar retail investors who worried that they could be frozen out of the IPO by international institutional favoured by the company’s eight investment banks acting as advisers or bookrunners on the float.
“We are thankful to our shareholders for their support to our strategic expansion plans aimed at creating long-term value,” said Emaar chairman Mohamed Alabbar. “As a mark of our commitment to them, we intend to offer to shareholders of Emaar Properties a priority right to subscribe for shares separately from the shares allocated to financial institutions and the general public and we also intend to distribute the funds raised as dividend.”
Emaar first announced that it was considering floating part of its lucrative malls division in March following months of speculation.
The company declined to give any more details about the timing of the initial public offering. However, market watchers expect it to take place in September.
Stretching to more than 5.8 million square feet in Dubai, Emaar’s malls assets include Dubai’s largest shopping centre The Dubai Mall, as well as Dubai Marina Mall, Souk Al Bahar and Gold & Diamond Park.
Nearly 21 million visitors flocked to the Dubai Mall in the first three months of 2014. The company is currently developing a 1 million square feet extension to the mall which will add a further 150 stores.
lbarnard@thenational.ae
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