Marka IPO gets SCA nod

Jamal Al Hai, Chairman of the Founders Committee of Marka, a public joint stock company under incorporation with a capital of Dh500 million, announced that the UAE Securities and Commodities Authority has granted the final approval for offering 55 per cent of Marka’s shares for public subscription.

Al Hai informed that investors can subscribe to Marka shares from April 13, 2014, for 12 days, and that subscription will be closed on April 24, 2014.

Eight banks and financial institutions will receive the contributions of the investors willing to subscribe to the company’s shares, including National Bank of Abu Dhabi, Union National Bank, Abu Dhabi Commercial Bank, Dubai Islamic Bank, National Bank of Fujairah, Commercial Bank International, Finance House, and Islamic Finance House.

Al Hai said: “We are delighted to announce that we have obtained all the necessary approvals to offer the company’s shares for IPO. We would like to thank the Securities and Commodities Authority, the Dubai Department of Economic Development, the Dubai Financial Market and other stakeholders for their support in the launch of the company which will be a qualitative addition to the list of joint stock companies in the UAE. Marka’s listing on the DFM will be the first public shareholding company in the UAE’s retail sector to be listed on UAE’s stock markets besides being the DFM’s first IPO in several years.”

He added that the aforementioned banks and financial institutions were selected as receiving banks for the IPO due to their unrivalled experience and wide network of branches in the UAE as well as in the region.

“We are pleased to partner with such leading financial institutions to be the receiving banks. We have full confidence in their capability to manage the process of receiving and handling subscription applications, as per the highest standards,” Al Hai said.

He added: “Marka’s Founders Committee will work in close cooperation with CAPM Investment, the financial advisor and lead manager of the Marka IPO; and the receiving banks to provide subscribers with applications and information required by them. The receiving banks will provide various platforms for investors to apply and pay the subscription amounts for Marka’s shares. We expect to witness a significant turnout by individual and institutional investors.”

Dr. Mahdi Mattar, CEO of CAPM Investment, a subsidiary of Financial House, said: “55% of the company’s shares, equivalent to Dh275 million, will be offered to the public in an IPO at the price of Dh1 per share plus a subscription fee of 3 fils per share.”

Mattar explained that the IPO will be open to investors of all nationalities, provided 51 per cent of equity is held by GCC nationals or GCC legal entities. The Emirates Investment Authority (EIA) is also entitled to subscribe to 5 per cent of the company’s offered shares, and those shares (if subscribed to) will be allocated to the EIA before any allocation of shares to the other shareholders, in accordance with the UAE Cabinet’s Decree No. 8 of 2006.

He added: “After the end of the subscription process and the announcement of the establishment of the company, Marka will submit a request for the listing of its shares on the Dubai Financial Market, in accordance with the established procedures. Accordingly, Marka will be the first public shareholding company in the UAE to be listed on the DFM for several years now, opening the door for the return of IPO activities in the UAE, which saw relative stagnation over the past few years.”

The conclusion of Marka Founders’ equity subscription of Dh225 million (or equivalent to 45 per cent of the company’s capital) in March paved the way for the obtaining of the final regulatory approvals for issuing the remaining 275 million shares (representing 55 per cent of the company’s capital) through an IPO. Marka’s 151 founders include an elite group of VIPs, businessmen and prominent investors.

Marka will focus on the retail and F&B sectors in the UAE and the broader GCC region. Both sectors are witnessing increased activity due to growing demand from both residents as well as the increasing number of tourists visiting the country.

Follow Emirates 24|7 on Google News.