Emaar Properties PJSC (EMAAR), which is the most actively traded company in Dubai, is seeking to raise as much as $1.58 billion from the initial public offering of its malls unit.
Emaar Malls Group LLC plans to sell 2 billion shares with a price range of 2.5 dirhams to 2.9 dirhams apiece, according to a company statement. The final price will be determined through a book-building process.
The share sale starts today and ends on Sept. 24 for individual investors and Sept. 26 for institutional investors. The offer could raise 5.8 billion dirhams ($1.58 billion) at the top of the pricing range. The shares will be listed in Dubai on October 2.
Emaar Malls (“EM”) has launched a 24 hour call centre to help investors in the UAE understand the key details of its initial public offering (“IPO”) on the Dubai Financial Market (“DFM”). To enquire on the EM IPO, and find out more information on the subscription process, investors should dial the Emaar Malls’ 24 hour call centre on 800 EMG IPO (800 364 476).
The IPO is the United Arab Emirates’ biggest since DP World Ltd.’s $4.96 billion offering in 2007. Emaar Malls is benefiting from growth in Dubai’s economy, which may expand about 5 percent this year, according to International Monetary Fund estimates in May.
Emaar Malls’ profit grew 24 percent in the first-half to 617 million dirhams, while revenue climbed 15 percent to 1.26 billion dirhams, according to a company statement last week. Its prized Dubai Mall, the world’s largest by total built-up area, attracted 75 million visitors last year.
The parent company plans to distribute 5.3 billion dirhams of the IPO proceeds as a dividend, it said last month. The company will make the payment as part of plans to distribute about 9 billion dirhams to its owners including the Dubai government.
Bank of America Merrill Lynch, JPMorgan Chase & Co. (JPM:US) and Morgan Stanley (MS:US) are the joint global coordinators and bookrunners for the IPO. HSBC Holdings Plc (HSBA), EFG-Hermes Holding SAE, National Bank of Abu Dhabi PJSC and Emirates Financial Services PSC are the joint bookrunners, while Emirates NBD PJSC (EMIRATES) and National Bank of Abu Dhabi are lead receiving banks. Rothschild is the financial adviser.