Emaar Raises $1.6 billion in IPO, Dubai’s Biggest IPO since 2007

There were more than 470 requests from establishments for Emaar's stock. (Image Inside the Dubail Mall

There were more than 470 requests from establishments for Emaar’s stock. (Image: Inside the Dubail Mall)

Emaar Properties, the only Dubai-based developer to have survived the intensive property crash without an annual loss, raised $1.6 billion in its initial public offering, United Arab Emirates biggest IPO since 2007.

Emaar Malls Group shares were valued at the highest point of the extent, with individual and institutional investors battling to get hold of its stock even at its costliest price tag, the company said in a statement. There were more than 470 requests from establishments for its stock.

“There’s definite interest in Dubai’s retail sector, hence a lot of institutional interest from outside the region,” Saleem Khokhar, head of equities at NBAD Asset Management Group, which oversees about $2.5 billion, said. “I’m very confident that secondary market trading will be very positive.”

Emaar Malls, which owns the Dubai Mall, one of the biggest malls on the planet, with 3.7 million square feet in leasable space and 75 million annual visitors, is now being spun off from Emaar Properties, the property goliath situated in Dubai, in the United Arab Emirates.

“The pricing corresponds to a relatively aggressive, but fair valuation of the Emaar Malls business,” Mohammed Kamal, director of Equity Research at Arqaam Capital, explained. “The group’s primary asset, the Dubai Mall, continues to capitalise on rising tourist numbers and consumer retail spend. Emaar Properties stock remains a proxy trade into the Dubai growth story.”

Emaar valued its offering at 2.90 dirhams which is around 79 cents per share. The offering, which was oversubscribed, esteemed the company at about $10.3 billion.

“We welcome all new shareholders to E.M. as we enter a new phase in the development of the company,” Mohamed Alabbar, the Emaar Malls chairman, said in a news release.

Trading of Emaar Malls shares is expected to begin on Thursday in Dubai. Emaar Malls sold around 2 billion shares in the offering, or around 15.4 percent of its share capital. The IPO is the biggest in the Emirates since DP World Ltd’s $4.96 billion offering in the year of 2007.

Bank of America Merrill Lynch, JPMorgan Chase & Co. and Morgan Stanley were amongst the joint global coordinators and bookrunners on the deal. HSBC Holdings Plc, EFG-Hermes Holding SAE, National Bank of Abu Dhabi PJSC, Emirates NBD PJSC, Emirates Financial Services PSC and Rothschild also helped oversee the stock sale.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

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