Emaar Properties said in a statement to DFM on Sunday that the Founders Committee of Emaar Malls Group PJSC” , public joint stock company under establishment, announced the sale of not less than 15% of its share capital in a public offering in the United Arab Emirates.
The initial public offering (IPO) of Emaar’s shopping malls and retailing unit will be launched on Sept. 14, and will list the subsidiary on Dubai's main stock market on Oct. 2,.
The offer would be one of the largest equity sales in the Middle East since 2008, underlining Dubai's recovery from a credit crisis that forced many state-linked developers to stall projects, and some - though not Emaar - to restructure debt.
The malls unit's IPO will be divided into two tranches, one for retail investors and one for institutions. Both will open on Sept. 14, when Emaar will announce the share price range for the sale.
The final price will be determined through a book-building process. The retail offer will close on Sept. 24 and the institutional offer on Sept. 26, Emaar said in a statement.
It aims to allocate at least 60 percent of the shares on offer to institutions and no more than 40 percent to retail investors. It will sell at least a 15 percent stake in the malls unit through the IPO.
The malls unit has a net asset value of AED 33.2 billion ($9.0 billion), the statement said.