Marka receives preliminary approval for IPO from Securities and Commodities Authority
Marka, a public joint stock company under establishment, intends to offer its shares to the public for subscription in the United Arab Emirates. Marka aims to establish itself as a leading retail operator in the Gulf Cooperation Council (GCC) region, with a primary focus on Dubai and Abu Dhabi in the U.A.E.
Marka will utilize its expertise to capitalize on the exponential growth witnessed in the Fashion Retail and F&B sector in the GCC. The Company, with its proposed listing on the Dubai Financial Market, is planned to be a first of its kind “listed play on GCC Retail” in the UAE.
CAPM Investment, a subsidiary of Finance House, will be the lead manager of Marka’s proposed initial public offering. Mahdi Mattar, CEO of CAPM Investment, said that ‘Marka’, has already received preliminary approval from the Securities and Commodities Authority (SCA).
This will be followed by the founders’ equity contribution. It is planned that the founders will subscribe to 45% of the company’s equity, or the equivalent of Dhs225m (225 million shares), while the remaining 55% equity (275 million shares) will be offered to the public in an IPO at a price of Dhs1 per share.
CAPM Investment said that Marka will be the first public shareholding company to list on the Dubai Financial Market (DFM) since 2009, adding that the timing of this move embodies the high level of confidence in the performance of our local economy, especially as it will be active in retail and F&B (food and beverages), two of the fastest growing sectors in the country.
It is noteworthy that the UAE economy has witnessed stellar growth during the past two years, after successfully recovering from the global financial crisis of 2008. This growth is a result of the strong recovery in all economic sectors, particularly tourism, retail, services and hospitality, which have been the primary drivers of the economy.
Mattar of CAPM Investment said: “We are delighted to act as financial advisor and lead manager for this issue, which holds strategic significance for being the first IPO on the DFM in more than 5 years as well as the first IPO in the UAE of a firm exclusively focused on the retail and F&B sector.
Mattar added: “We are confident that this issue will be a great success, given the significant growth prospects enjoyed by the company on the one hand, and the return of confidence to the financial markets on the other.”
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