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28 March 2024

Marka IPO to open on Sunday

Published
By Waheed Abbas

The newly-formed public joint stock company Marka will launch its initial public offering (IPO) across UAE on Sunday, April 13, which will be open for both retail and institutional investors.

The IPO will be open for subscription for 12 days and priced at Dh1 per share with a premium of 3 fils a share, said Mahdi Mattar, chief executive of CAPM Investment, the lead advisor of Marka.

The company is selling 275 million shares, representing 55 per cent of the company’s capital, while the rest is funded by the 151 founders.

He said founders include some of the top executives of public and private sector companies. “They are Who’s Who of the business community of UAE.”

Commenting on listing, Mattar said: “We are going to call AGM between May 19 and 22… expect listing in the first week of June on Dubai Financial market.”

DFM announced earlier that Marka will become the first company to utilise the DFM eIPO platform, a sophisticated and efficient solution for IPO subscription directly linked with the receiving banks.

He said 51 per cent is allocated for GCC nationals and 49 per cent for foreigners with minimum subscription of Dh5,000 and Dh1,000 increment. The maximum subscription is 5 per cent.

Marka, according to Mattar, would be buying franchises and plans to open first retail outlet by the year-end.

“The company will open 100 outlets across the UAE and Gulf countries. The target is to open mid to high-end retail outlets; For F&B aims is to have mid-range outlets but can go to high-end, depending on the location,” he added.

The company will start operations in Dubai and Abu Dhabi and then move out to GCC. “You test the concept in Dubai and Abu Dhabi and then move out. Majority of the outlets will be outside in GCC but core will be in the UAE.”

The company’s will primarily be in fashion, he added.