The Dubai-based shopping mall operator, Emaar Malls Group, confirmed that it has raised $1.6bn during its initial public offering.
Emaar Malls, the owner of the Dubai Mall, one of the biggest centers globally, with 3.7m sq ft of leasable space and enjoying 75 million visitors during last year, is being pulled away from Emaar Properties, the property company based in Dubai.
The mall operator priced the offering at around 2.90 dirhams, or around 79 cents per share. The oversubscribed offering placed a valuation of about $10.3bn on the company. All new shareholders were welcomed to Emaar Mills by its chairman, Mohamed Alabbar, as the company enters a new development phase.
Around two billion shares were sold during the offering, which represented about 15.4% of the company’s share capital. It is due to commence share trading on Thursday in Dubai.
The company handles 5.9 million square feet of leasable space in malls in Dubai. Its revenue during 2013 reached 2.39bn dirhams. The underwriters on the offering were Morgan Stanley, JPMorgan Chase and Bank of America Merrill Lynch, with Rothschild acting as financial advisor.
1 OCTOBER 2014, United Arab Emirates
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