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Emaar Properties has announced its intention to sell Emaar Malls Group (EMG) shares via an initial public offering (IPO) on the Dubai Financial Market (DFM). About 30 per cent of the offering will be made available to individual investors, 70 per cent to qualified institutional investors and with 10 per cent targeted for preferential allocation to existing Emaar Properties shareholders as of today. Emaar Properties expects to sell at least 15 per cent of EMG as part of the offering.
EMG, the developer of The Dubai Mall, recorded impressive revenues of Dhl.25 billion during the first six months of the year. This is 13 per cent higher than the first half of last year, when it made Dh1.1 billion. The mall's revenue in the second quarter was Dh650 million, 11 per cent higher than last year's Q2 revenue of Dh584 million.
While valuation will be dependent on the book-building process, Emaar Properties will earmark about Dh5.3 billion from the IPO proceeds to be paid as dividend. This amount aggregated with the dividend received from EMG prior to the IPO of Dh3.7 billion will allow Emaar Properties to pay a dividend of about Dh9 billion to its shareholders.
Mohamed Alabbar, Chairman of Emaar Properties, said: ''The IPO of EMG is a milestone for the development of the UAE capital markets as, for the first time, it brings together institutional and retail shareholders in the same offering on the DFM."
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Source: Property Weekly