Sunday / October 14.
HomeChannelsFeaturedEmaar hires Morgan Stanley for listing

Emaar hires Morgan Stanley for listing

emaar misrEmaar Properties, developer of the world’s tallest tower, hired Morgan Stanley to advise on the sale of a 25 percent stake in its shopping malls and retail business after revenue at the unit surged.

The company is also considering appointing a local bank as additional adviser on the secondary offering, Chairman Mohamed Alabbar said today in an interview in Dubai. Emaar is seeking to complete the deal by mid-June and plans to sell the shares on Nasdaq Dubai and in London, Alabbar said in a separate interview earlier with Bloomberg Television.

Emaar plans to raise between 8 billion dirhams ($2.18 billion) to 9 billion dirhams from the secondary public offering, which will primarily be used pay a dividend to shareholders, the company said March 15. The Dubai government is Emaar’s largest shareholder, with a stake of almost 30 percent, according to data compiled by Bloomberg.

Emaar is benefiting from a tourism and retail boom in Dubai that’s driving up visitor numbers at its largest malls and boosting sales. The malls and retail business posted a 20 percent increase in revenue to 2.84 billion dirhams in 2013, while the Dubai Mall received 75 million shoppers last year.

Morgan Stanley  expects to see two to three billion dollar-plus IPOs from the Gulf region in the second-half of the year, former Middle East and North Africa investment bank head Klaus Froehlich said in an interview in Dubai on Feb. 10.

A spokesman for the U.S. bank declined to comment on its role in the Emaar unit offering.-Bloomberg