Emaar Malls, an under-establishment joint stock company, closed on Friday subscription for investment institutions, two days after it close the retail subscription.
Banks will start setting the final share price within the price range announced at the start of the subscription on September 14, which ranges between AED 2.50-2.90, according to Al Ittiahad newspaper.
Bank sources estimated that more than AED 40 billion were collected from retail subscription. This amount represents 30% of the initial public offering of 15.4% in Emaar Malls’ capital.
The sources also expected allotment to be set at 4.3%.
The Central Bank of the UAE has warned banks against exceeding their funding to customer in Emaar Malls IPO, which is 5:1. The Central Bank demanded detailed reports from banks on the number of their subscribed customers and the size of their finances. Any violating banks will be required to pay a fine and interest accounted from such financing will be cancelled. Magdy Moayta, head of issuances at the National Bank of Abu Dhabi (NBAD), affirmed that the Central Bank’s supervision of banks’ financing operations of IPOs is part of the Central Bank’s commitment to having IPOs at their normal position and not enlarging them so as to maintain the interests of investors and the national economy. The Central Bank and the Securities and Commodities Authority (SCA) have performed an effective role in monitoring and supervising the process of Emaar Malls’ IPO, he added.