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Al Mal Capital REIT obtains SCA approval for IPO on DFM

Al Mal Capital REIT obtains SCA approval for IPO on DFM
The Fund seeks to list its units on the DFM in January 2021
Dubai Investments
DIC
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Dubai – Mubasher: Al Mal Capital, a subsidiary of Dubai Investments, has received the approval of the Securities and Commodities Authority of the UAE (SCA) to launch an initial public offering (IPO) for its newly founded entity Al Mal Capital REIT on the Dubai Financial Market (DFM).

With a target offer size of AED 500 million, the Fund seeks to list its units on the DFM in January 2021, according to a press release on Monday.

Al Mal Capital REIT, a closed-ended real estate investment trust, will use the offering's proceeds in investing in various income-generating real estate assets, backed by secure long-term lease agreements.

Al Mal Capital REIT will focus on high-performing UAE sectors, including healthcare, education, and industrial assets, with a target annual return of 7%.

The Fund’s IPO subscription period is on 8-19 November 2020, with a subscription price of AED 1 per unit and a subscription fee of AED 0.02 per unit.

The Chairman of Al Mal Capital, Khalid bin Kalban, said: "Al Mal Capital is confident that the REIT and DFM listing will meet investors’ needs, providing a liquid vehicle to access a sector with strong fundamentals."

Meanwhile,  the Vice Chairman and CEO of Al Mal Capital, Naser Al Nabulsi, commented: "SCA’s approval on Al Mal Capital REIT IPO is a breakthrough and the first of its kind in the UAE financial sector."