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Emaar success triggers huge IPO pipeline

dubai mall aquarium|By TAP Staff| Following the huge success of Emaar’s malls IPO, Chairman Mohammed Alabbar indicated the possibility of floating the group’s hotel business, which includes the signature Armani Hotel.

Meraas Holding, a Dubai government-controlled developer, has picked banks to manage the IPO of its theme park unit, three people with knowledge of the matter said earlier this month. The company’s IPO is planned for the fourth quarter, the people said, asking not to be identified as the information is private.

Amanat Holdings, a healthcare and education venture, announced plans today for a share sale next month. Many had plans under discussion even before Emaar got at least $43 billion in orders for 15.4 percent of its retail unit, raising $1.6 billion.

Amanat plans to raise 1.375 billion dirhams ($374 million) from an IPO on the Dubai Financial Market starting in the second half of next month, it said in an e-mailed statement

“This will open the door to a surge in IPOs,” Shailesh Dash, chief executive officer of Dubai-based Al Masah Capital Ltd., which manages $545 million, told Bloomberg on phone. “It sends a clear message to people with successful businesses to go to the market.”

Axiom Ltd., the Dubai-based mobile-phone retailer that abandoned a sale four years ago, said in July it may revive those plans.

Meanwhile Egyptian Billionaire Nassef Sawiris is considering selling shares in his construction business in Dubai to take advantage of improved liquidity, three people with knowledge of the matter said last week. The offering could raise more than $200 million, two of the people said, asking not to be identified as the information is private. A spokesman for the company declined to comment last week.

“We are working on several opportunities across the region and expect a number of companies to seek listings over the next 12 months,” Patrick Delivanis, who worked on the Emaar Malls offering and is head of investment banking for the Middle East and North Africa at Morgan Stanley, said.

The Emaar Malls share sale is the biggest in the Middle East since Saudi Arabian Mining Co. (MAADEN) raised $2.5 billion dollars in June 2008, according to data compiled by Bloomberg. It’s also the biggest in the U.A.E. since DP World Ltd. raised $5 billion in 2007. Emaar Malls shares, which were priced at 2.9 dirhams, the top end of the range, will start trading Oct. 2.

Shares in Marka, which completed the first IPO on the Dubai exchange in five years, jumped 59 percent on their first day of trading on Sept. 25. The stock has since pared its gain to 45 percent since it began trading. Marka plans to invest in retail and hospitality in the Gulf Cooperation Council.