The first three days of Marka IPO have witnessed a remarkable turnout of investors amidst expectations of oversubscription, Emirates 24/7 reported.
Dr. Mahdi Mattar, CEO of CAPM Investment, a subsidiary of Finance House and the financial advisor and lead manager of the Marka IPO, said: "Although it is too early to know the outcome of the IPO, given that large individual and institutional investors subscribe in the latter part of the subscription period, the outcome of the first few days of the IPO suggests that the demand for the offered shares will be oversubscribed."
Mattar said: "In addition to the high turnout expected from small investors, who usually make up the larger number of total subscribers in any IPO, it is expected that the appetite and demand from institutional investors and other prominent investors will increase over the next few days, in line with their long-term investment strategies."
He added: "Unlike many previous IPOs, the Marka IPO has only 275 million shares on offer. This is likely to result in oversubscription, especially with the recovery of the stock markets during the last 18 months, resulting in the renewing of investors' interest in public equity markets in general, and IPOs in particular. Marka will be the first public shareholding company that will operate in the retail and F'&'B sectors, two of the fastest growing sectors in the UAE and the region. We are confident that the demand for this IPO will represent a high confidence in the prospects of the company's future growth."
Mattar said traditionally banks are more willing to provide banking facilities to investors who wish to subscribe to new IPOs that adopt the concept of pro-rata allocation, a model which the Marka IPO also adopts. These facilities further contribute to enhancing investors' opportunities to receive higher allocations of shares."
Marka PJSC is issuing a total of 500m shares to be subscribed by founders and the general public.
Dr. Mahdi Mattar, CEO of CAPM Investment, a subsidiary of Finance House and the financial advisor and lead manager of the Marka IPO, said: "Although it is too early to know the outcome of the IPO, given that large individual and institutional investors subscribe in the latter part of the subscription period, the outcome of the first few days of the IPO suggests that the demand for the offered shares will be oversubscribed."
Mattar said: "In addition to the high turnout expected from small investors, who usually make up the larger number of total subscribers in any IPO, it is expected that the appetite and demand from institutional investors and other prominent investors will increase over the next few days, in line with their long-term investment strategies."
He added: "Unlike many previous IPOs, the Marka IPO has only 275 million shares on offer. This is likely to result in oversubscription, especially with the recovery of the stock markets during the last 18 months, resulting in the renewing of investors' interest in public equity markets in general, and IPOs in particular. Marka will be the first public shareholding company that will operate in the retail and F'&'B sectors, two of the fastest growing sectors in the UAE and the region. We are confident that the demand for this IPO will represent a high confidence in the prospects of the company's future growth."
Mattar said traditionally banks are more willing to provide banking facilities to investors who wish to subscribe to new IPOs that adopt the concept of pro-rata allocation, a model which the Marka IPO also adopts. These facilities further contribute to enhancing investors' opportunities to receive higher allocations of shares."
Marka PJSC is issuing a total of 500m shares to be subscribed by founders and the general public.
Source:
Mubasher
