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19 March 2024

Emaar Properties to list hospitality unit soon: Alabbar

Emaar Chairman Mohamed Alabbar addressing the Dubai International Project Management Forum in Dubai on Monday. Picture by Parag Deulgaonkar

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By Parag Deulgaonkar

Emaar Properties, Dubai-bourse listed developer, is planning to list its hospitality division after successfully closing the initial public offering for its mall unit, the company’s chairman said on Monday.

“We plan to list our hospitality division soon,” Mohamed Alabbar said addressing the Dubai International Project Management Forum.

He did not give further details on the IPO.

Emaar has raised $10 billion by selling shares in its mall unit, the biggest initial public offering in Dubai since 2007.

“We are encouraged by the mall (Emaar Malls Group) listing… people wanted to take a share in Dubai Mall where visitor numbers have crossed 80 million today and set to grow further,” Alabbar said.

Emaar Malls’ market capitalisation at listing will be about Dh37.7 billion, the company has said. The developer estimates its investment properties at Dh20.4 billion as of the end of September, with share capital of Dh13 billion. The unit’s stock will start trading on Thursday, October 2.

The developer said in a said in a bourse filing that shares in the initial public offer of Emaar Malls Group were priced at Dh2.90 per share, giving an overall sale value of Dh5.8 billion.

In total, the portion of shares allocated to institutional investors was covered more than 30 times by orders from 470 accounts, while retail investors submitted orders worth over 20 times the amount of shares available to them, the filing said.

Of the offer of 2 billion shares, equivalent to 15.4 per cent of EMG, 70 per cent will go to institutional investors and the remaining 30 percent to retail accounts.

Bank of America-Merrill Lynch, JP Morgan Chase and Morgan Stanley were joint global coordinators of the offer, and four other banks acted as joint bookrunners.