The malls unit of Emaar Properties, Dubai’s largest publicly traded construction company, has priced at the top of its range amid high institutional investor demand for the largest IPO in the Gulf region since the global financial crisis of 2008.
Emaar Malls Group (EM) priced at 2.9 dirhams ($0.79), valuing the company at about $10.3 bn, Emaar Properties says in a press release. The company is to begin trading on the Dubai Financial Market on Thursday.
The listing of a 15.4 percent stake in EM ‒ the largest malls owner in Dubai with properties including the well-known Dubai Mall ‒ is expected to raise $1.6 bn. Emaar Properties says the institutional tranche was oversubscribed by 30 times and the retail tranche was oversubscribed by 20 times.
In total, the firm received 470 orders in the institutional order book. Of the 2 bn shares on offer, about 70 percent was allocated to institutional investors and the remaining 30 percent was allocated to retail investors, Emaar Properties adds in its statement.
The listing represents the largest IPO in the Gulf region since July 2008 when Saudi Arabia Mining Company (Ma’aden) raised $2.5 bn on the Saudi Stock Exchange. The EM offering also comes days after the IPO of Marka, the Dubai retail brand, which ended a five-year dry period for IPOs on the Dubai Financial Market.
‘We are delighted that the landmark initial public offering of EM has been so successfully received by both institutional and individual investors,’ says Mohamed Alabbar, chairman of Emaar Malls, in a press release. ‘EM has performed very well across the business in the last five years and we firmly believe our prominence within the MENA region’s fertile retail sector, alongside our world-famous assets and experienced management team, [provides] a potent combination that will support the company’s future growth.’
