Marka’s initial public offering raises mammoth Dh10 billion
Marka, created by prominent businessmen in the UAE, offered for sale 55 per cent of its capital, or 275 million shares, at Dh1 a piece in a 12-day sale.
The first initial public offering (IPO) of Marka oversubscribed by more than 36 times as it raised Dh10 billion instead of the Dh275 million target on the Dubai Financial Market (DFM), the company said on Friday.
Marka does not have any current operations and it is still being incorporated, but the nature of the company underlined the return of confidence in Dubai. The company is planning to spend the proceeds on opening more than 100 fashion stores, restaurants and cafes across the Gulf region over the next five years.
It was the first IPO since 2009 on Dubai’s main bourse and also the first one in the retail sector on the DFM. It was open to all nationalities and all the applicants will be entitled to ownership of the company, Marka had said at the launch of the IPO.
Marka, created by prominent businessmen in the UAE, offered for sale 55 per cent of its capital, or 275 million shares, at Dh1 a piece in a 12-day sale, which began on April 13 and closed on April 24. The founders of the company notified that the allocation of shares would be 2.77 per cent. The company will start the refunds on May 8, they added.
The huge turnout reflects investors’ confidence in the high-growth potential of Marka and the company’s capabilities to rapidly establish itself as the first public shareholding company that will operate in the retail and F&B sectors, two of the fastest growing sectors in the UAE and the region.
The company got regulatory approval to list in Dubai as a ‘greenfield’ company, which means it did not have to file financial records for past years.
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