Officials at Emaar Properties along with its advisors are busy preparing a comprehensive booklet that will provide financial details, based on which local and international investors will be able to make a sound decision of whether to invest in the IPO. The final flotation price of shares is not to be established until September 26, when the offer closes.
Emaar properties have announced to offer at least 15% in the Emaar Malls Group (EMG). Emaar Malls is its most lucrative project and comprises of the world’s biggest mall.
Advisers are taking three factors into consideration, while deciding the price range of the shares. First EMG has already announced that it will be putting 1.9 billion shares into the open market to raise at least AED 5.3 billion. Second, the net asset value of Emaar malls is approximately AED 33.2 billion. Third, the international and regional demand for the shares and the validated premium. Hence, each share is expected to be between AED 2.60 and AED 2.80.
In order to market the IPO, an international road show has been organized. The road show will commence from the GCC and follow to Asia and London. The advisors expect a huge demand for the shares in the UAE, where retail investors will have the opportunity to apply for shares through banks and iVestor, DFM’s online portal. High demand is also anticipated in Hong Kong, Singapore and London.