DUBAI — Emaar Properties PJSC, the developer and operator of Dubai Mall, plans to list 25 percent of its retail subsidiary, Emaar Malls Group, on the Dubai Financial Market (DFM).
This story first appeared in the May 27, 2014 issue of WWD. Subscribe Today.
The date of the initial public offering has not been disclosed, but it’s expected to raise between $2 billion and $2.5 billion.
“The malls business is one of our high-performing subsidiaries,” said Mohamed Alabbar, chairman of Emaar Properties. “The proposed listing on DFM will enable the business to achieve its true potential.”
More than 55 percent of Emaar Properties’ revenues come from its shopping malls and retail, hospitality and leisure, and international operations. The malls and retailing unit reported revenue of $800 million in 2013, up over 20 percent from 2012.
“The positive economic indicators of Dubai, led by its status as a global hub for business and leisure and the massive infrastructure development in preparation for hosting the World Expo 2020, are growth drivers for our malls and retail business,” said Alabbar.
One of the biggest retail complexes in the world, Dubai Mall had 75 million visitors last year. The developer is adding another million square feet of space, comprising more than 150 new shops.
Current shareholders of Emaar Properties will have a priority right to subscribe to shares separately from the shares allocated to financial institutions and the general public.