Emaar Properties to list Emaar Malls Group
The IPO will be made available to individual investors (30 percent), as well as qualified institutional investors (70 percent), with 10 percent being targeted for preferential allocation to existing Emaar Properties shareholders as at 10th September 2014. Emaar Properties expects to sell at least 15 percent of EMG as part of the IPO.
Emaar Malls Group, the developer of the iconic Dubai Mall, recorded revenues of AED 1.250 billion ($340 million) during the first six months of 2014. This is 13 percent higher than the H1 2013 revenue of AED 1.106 billion ($301 million). The Q2 2014 malls revenue is AED 650 million ($177 million), 11 percent higher than Q2 2013 revenue of AED 584 million ($159 million).
Whilst valuation will be dependent upon the book building process, Emaar Properties will earmark approximately AED 5.3billion ($1.44billion) from the IPO proceeds to be paid as a dividend. This amount aggregated with the dividend received from EMG prior to the IPO of AED 3.7billion ($1.01billion) will allow Emaar Properties to pay a dividend of approximately AED 9billion ($2.45billion) to its shareholders. ■