Subscription to shares of Marka, a public joint stock company under incorporation with a capital of Dhs500m, will begin tomorrow, April 13, amidst expectations of huge turnout.
Subscription banks have made preparations to meet the expected high turnout through the allocation of work teams in the branches that are receiving subscription applications. The subscription, which will continue until April 24, will be carried out through selected branches of eight banks and financial institutions, namely National Bank of Abu Dhabi, Union National Bank, Abu Dhabi Commercial Bank, Dubai Islamic Bank, National Bank of Fujairah, Commercial Bank International, Finance House, and the Islamic Finance House.
Dr. Mahdi Mattar, CEO, CAPM Investment, Marka’s financial advisor and lead manager of the IPO, said that the minimum subscription is 5,000 shares at Dhs1 per share, plus a premium of 3 fils per share. Any subscription exceeding this minimum shall be in multiples of 1,000 offer shares. If the number of shares subscribed surpassed the number of shares offered, stocks will be allocated to subscribers by pro-rata, excluding the shares that may be subscribed by the Emirates Investment Authority-EIA (if any).
Jamal Al Hai, Chairman of the Founders Committee, said: “We have adopted the concept of proportionality in the allocation as a fairer method because it allows all subscribers to get an allocation as per the percentage of their subscribed amount out of the total subscription. This concept will make sure that no subscriber is denied a subscription, regardless of the number of shares he has subscribed to. It also takes into account the interests of small and large investors alike, considering not more than 5% of shares will be allocated to a single subscriber.”
He further explained that in case of oversubscription, the shares will be proportionately distributed to the subscribers. Allocation shall be to the nearest complete share provided that none of the shareholders, as a result of the allocation, be deprived of participating in the Company irrespective of the number of shares subscribed.
The IPO will be open to investors of all nationalities, provided 51% of equity is held by GCC nationals or legal entities. The Emirates Investment Authority (EIA) is also entitled to subscribe to 5% of the Company’ offered shares, and those shares (if subscribed for) will be allocated to the EIA before any allocation of shares to the other shareholders, in accordance with the UAE Cabinet’s Decree No. 8 of 2006.
Marka will be the first public shareholding company operating in the UAE’s retail sector and F&B sectors. It seeks to establish itself as a leader in the retail and F&B markets in the GCC. It will introduce to the regional markets innovative global brands and concepts in the fields of fashion, restaurants and cafes.