DFM welcomes listing of Marka

Dubai Financial Market (DFM) on Thursday announced the listing of Marka (PJSC) as trading commenced on the company's shares under the trading symbol "Marka", which appeared on DFM screens, trading system and publications within the 'Consumer Staples Sector'.

DFM, in a statement, said the successful listing of Marka further fortifies the financial market's prominent position as the most favoured listing venue for leading local and regional companies and lifts the total number of listed companies to fifty five.

Marka became the first IPO issuer to list on DFM since 2009 as well as the first issuer to utilise DFM "eIPO" platform, a sophisticated and efficient solution for IPO subscription directly linked with the receiving banks.

Essa Kazim, Chairman, Dubai Financial Market, Jamal Al Hai, Chairman, Marka (PJSC), and senior representatives from both sides attended the listing ceremony at DFM's trading floor.

Commenting on this development, Essa Kazim, said the listing of Marka on DFM heralds a new era of thriving IPO activity and represents an initial success for DFM's constant efforts to encourage private and family businesses to go public and list on the exchange.

"This listing is an invaluable addition to the market as it enables investors to benefit from the growth of the Trade sector, which is one of the key sectors that drives Dubai's economy, with approximately 30 per cent of the Emirate's GDP. Having companies representing the trade sector on board will further boost DFM's efforts to achieve one of its strategic objectives, which is to fully reflect the most important sectors of the economy by attracting companies from major and fast growing sectors including retail, tourism, health and education. We also provide support for these companies to achieve their growth strategy by benefiting from the capital markets. Since DFM was established, it has been efficiently playing this role for companies representing various sectors including real estate, banking, transportation and telecommunication."

Jamal Al Hai, Chairman of Marka's Board of Directors, commented, "Today is an historic milestone for Marka, and on behalf of Marka and the Board of Directors, I would like to extend our sincere thanks to Essa Kazim and the Dubai Financial Market for the ongoing support exercised throughout Marka's IPO and listing process. We would also like to thank the Securities and Commodities Authority for their cooperation and support in all phases of the founding of the company and the inclusion of its shares for trading."

Marka jumps 77% in first trading day on DFM

Shares in Dubai retailing and restaurants group Marka jumped 77 percent upon listing on Thursday in the first flotation on the emirate's main stock market since 2009.

Marka shares opened at Dh1.77 on the Dubai Financial Market (DFM), up from their initial public offer (IPO) price of Dh1. The firm raised Dh275 million ($75 million), 55 percent of its capital, in April via an offer that was 36 times subscribed.

Strong rebound in Dubai's equity and property prices over the past 18 months has revived investors' spirits, and the Marka IPO appears to signal the start of a string of offers on the DFM.

Emaar Properties, Dubai's top real estate developer, has attracted heavy demand for the much bigger IPO of its shopping malls unit on the DFM, which will end this week and is expected to raise $1.58 billion.

The huge oversubscription for Marka's offer showed great appetite among Dubai retail investors for fresh equity. Founded this year by prominent United Arab Emirates investors, the firm plans to spend proceeds of the offer on opening fashion retail outlets, restaurants and cafes across the Gulf Arab region.

But because Marka is a start-up which does not yet have major underlying businesses, the stock is expected mostly to attract retail investors; analysts at institutions contacted by Reuters said they had not assigned the stock fair value or target price estimates.

"We should expect the stock to fluctuate," said Sebastien Henin, head of asset management at The National Investor in Abu DHabi. "The volume is likely to be dominated by retail investors."

A Dubai-based asset manager said: "With no underlying business, it's not an investment we would consider. I believe the IPO was dominated by retail investors."

Khaled Almheiri, Marka's vice chairman, said this week that the company was looking at possible acquisitions in the retail and hospitality sectors, but did not name the targets.

Marka says it has obtained rights to introduce six international fashion brands to the Gulf, including the CR7 footwear of soccer star Cristiano Ronaldo. It plans to open its first three store outlets in Dubai and Abu Dhabi in early 2015.

The company has said it aims over the next five years to open over 100 fashion stores, restaurants and cafes across the Gulf Arab region, where personal consumption is growing rapidly because of strong economic growth.

Marka's 151 founders are a virtual who's who of the UAE business community, including Jamal Al Hai, a top executive at Dubai's airports operator, Abubaker Al Khoori, chairman of Abu Dhabi's biggest real estate developer Aldar Properties, and Khaled Almheiri, founder of Evolvence Capital.

The firm obtained regulatory approval to list in Dubai as a "greenfield" company, meaning it did not have to file financial records for past years as existing companies would have to do. Greenfield IPOs were popular at the height of the UAE's stock market boom a decade ago but then fell out of favour as financial storm clouds gathered.

Marka initially planned to list its shares on the DFM around the first week of June, but the market was hit by massive volatility that month. Two companies have listed shares on the smaller of Dubai's two stock markets, Nasdaq Dubai, over the past 12 months.

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