The retail tranche of Emaar Malls Group’s IPO was oversubscribed 20 times. Lee Hoagland / The National
The retail tranche of Emaar Malls Group’s IPO was oversubscribed 20 times. Lee Hoagland / The National

Markets

Emaar Malls Group shares to trade at top end of price range on DFM

At Dh2.9 per share, EMG will have a market capitalisation of nearly Dh38 billion on the Dubai Financial Market.

Frank Kane

September 29, 2014

Demand from global investors for shares in Emaar Malls Group, the UAE retailer that owns the Dubai Mall, has been overwhelming.

The shares will begin trading on Thursday at the top of the price range set by the company and its advisers. At Dh2.9 per share, EMG will have a market capitalisation of Dh37.7 billion on the Dubai Financial Market.

Global institutional interest in the initial public offering (IPO) has been strong, according to a notice posted on the DFM. Investors from outside the UAE – who were allotted 70 per cent of the issue – have bid for 30 times the number of shares available at Dh2.9bn.

In total, there were 470 orders on the institutional orders book, the notice said.

The offer to retail investors in the UAE was 20 times oversubscribed.

The levels of oversubscription will mean applicants will not receive the full number of shares they applied for, and will have their share allotments scaled back significantly. Allotment details and refunds of cash for unsuccessful applicants will be processed over the next two days.

Mohamed Alabbar, chairman of Emaar Malls, said: "We are delighted that the landmark IPO has been so successfully received by both institutional and individual investors.

“The business has performed very well across the business in the last five years and we firmly believe that our prominence within the Middle East and North African fertile retail sector, alongside our world-famous assets and experienced management team, is a potent combination which will support the future growth. We welcome all new shareholders as we enter a new phase in the development of the company.”

Dh2.9 is the top of a indicative range beginning at Dh2.5, and means that EMG and its advisers have gone for the maximum under the terms of the EMG prospectus.

Some 15 per cent of the company is being floated on the DFM by Emaar Properties, the property developer and hospitality group owned 29 per cent by the government of Dubai.

Most of the proceeds of the IPO, totalling some Dh5.8bn, will be paid to investors of the parent group in dividends.

fkane@thenational.ae

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History's medical milestones

1799 - First small pox vaccine administered

1846 - First public demonstration of anaesthesia in surgery

1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases

1895 - Discovery of x-rays

1923 - Heart valve surgery performed successfully for first time

1928 - Alexander Fleming discovers penicillin

1953 - Structure of DNA discovered

1952 - First organ transplant - a kidney - takes place 

1954 - Clinical trials of birth control pill

1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.

1998 - The first adult live-donor liver transplant is carried out

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Spending an excessive amount of time on the phone.

Neglecting personal, social, or academic responsibilities.

Losing interest in other activities or hobbies that were once enjoyed.

Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.

Experiencing sleep disturbances or changes in sleep patterns.

What are the guidelines?

Under 18 months: Avoid screen time altogether, except for video chatting with family.

Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.

Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.

Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.

Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.

Source: American Paediatric Association
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MEN

Cricketer of the Year – Shaheen Afridi (Pakistan)

T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)

ODI Cricketer of the Year – Babar Azam (Pakistan)

Test Cricketer of the Year – Joe Root (England)

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Cricketer of the Year – Smriti Mandhana (India)

ODI Cricketer of the Year – Lizelle Lee (South Africa)

T20 Cricketer of the Year – Tammy Beaumont (England)

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Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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