Dubai Mall owner aiming for £1bn IPO in UAE’s biggest flotation since financial crisis

The biggest flotation in the United Arab Emirates (UAE) since the global financial crisis seven years ago is underway as Dubai’s Emir Malls Group (EMG) is hoping to raise nearly $1.6bn (£983m) from the sales of shares.

 

EMG is offering 2bn shares, worth around 15.4 per cent of equity, with the price range set at between 2.50 and 2.90 UAE dirhams per share.

 

At the mid-point of this price range EMG will have a market value of ar­ound $9.6bn, as it will look to raise up to $15.8bn from the float.

 

Around 70 per cent of shares will be offered to institutional investors, while 30 per cent will be made available to individual investors from UAE, with 10 per cent of shares earmarked for existing Emmar share holders, and  five per cent reserved for the Emirates Invest­ment Authority.

 

Mohamed Alabbar, chairman of EMG said: “EMG has an excellent track record and we believe that our iconic assets, strong parent, experienced management team and the attractive consumer market in Dubai, make us well positioned to deliver further growth.”

 

The IPO is the biggest float in the emirate since port operator DP World’s $4.96bn offering in 2007, and  will be the first in the region to provide both an institutional and  retail offering.

 

Alabbar added “This IPO represents a significant step in the further development of the UAE capital markets, with shares in EMG being offered to both individual and institutional investors, and EMG is proud to be at the fore­front of this innovation.”

 

EMG’s portfollio includes the Dubai Mall, one of the largest shopping malls in the world and the main source of revenue for the group.

 

The Dubai Mall had approximately 75m visitors in 2013, and acc­ounted for around 50 per cent of luxury goods sold in Dubai that year by overall sales value.

 

 

1 After an Arabic degree at Oxford, Chris joined Rothschild in 2000, and is now managing director in the global financial advisory team.

 

2 Chris is Rothschild’s head in the Middle East, and has been involved in deals such as the $25bn Dubai World restructuring, $16bn Nakheel restructuring, and Gulf Marine Services London IPO.

 

3 Also mentioned in the release as advising from Rothschild is global co-head of equity advisory Adam Young, who has nearly 30 years of experience in equity capital markets.

 

Merrill Lynch International, JP Morgan Securities and Morgan Stanley & Co. International were joint global coordinators for the offering. BofA Merrill Lynch, JP Morgan, Morgan Stanley, EFG Hermes UAE , Emirates Financial Services, HSBC Bank Middle East and National Bank of Abu Dhabi were the joint bookrunners.