Emaar Properties PJSC has announced plans to list its shopping malls and retail subsidiary, marking one of the largest public offerings in the region since 2008. Subject to market conditions, Emaar will list up to 25% of the Emaar Malls Group equity through a secondary offering of shares. The funds raised through the sale of 25% of the company, estimated to be between $2 and 2.4 billion, will be primarily distributed as dividend to the company’s shareholders. Emaar malls and retail is one of the high-growth business entities of Emaar, having recorded full-year 2013 revenue of $772 million, an increase of over 20% compared to the revenue in 2012. The gross operating profit for the malls and retail business increased to $ 608 million compared to $ 506 million in 2012.
“We are thankful to His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE vice president and prime minister and ruler of Dubai, for his guidance and inspiration, which has helped make Emaar an established brand. The proposed listing of Emaar malls and retail and the distribution of funds raised through the sale of shares as dividend underlines our commitment and gratitude to our shareholders, including the Government of Dubai, for their unwavering support to the company since its inception in 1997,” says Mohamed Alabbar, chairman of Emaar Properties. “Over the years, they have placed their utmost trust in our development strategy of business segmentation and expansion, as we invested our revenues back into the business to ensure long-term value creation. Today, Emaar’s shopping malls and retail subsidiary is our high-performing business, which derives its growth impetus from the sustained growth of Dubai and its reputation as an international business and leisure hub,” he adds.
The decision to list Emaar’s malls and retail business was proposed at the board of directors meeting of the company, which reviewed the current and projected growth opportunities for the company, and the optimal corporate structure required for achieving its vision to become one of the most valuable companies in the world. The board decided that listing of various Emaar subsidiaries, with a view to creating independent companies with their own growth strategies and management structures, was imperative to achieve Emaar’s long-term growth strategies. Emaar malls and retail has been identified as the first subsidiary to be listed in view of its significant size, growth opportunity set and the maturity of the business. In the future, listing of other relevant subsidiaries will also be considered as and when appropriate.