Dubai: Fashion retailer Marka said it plans to acquire businesses in the retail and hospitality sectors, reflecting the company’s strong revenues and profitability in the near-term after the company’s IPO (initial public offering) tomorrow.
Marka yesterday said the strategy was in line with the company’s commitment to generate long-term value for its shareholders.
“Marka’s acquisition plans are in line with the company’s vision to be the premier retail operator in the UAE and across the region. We have partnered with global brands and are on track to launch new store outlets across the GCC,” Khalid Al Muhairi, Vice-Chairman of Marka, said in a statement.
Expansion mode
The company was recently named as the exclusive franchise operator for 5 international brands. It expects to open its first store by early of 2015 and more than 35 stores by 2020.
“Overall this [the announcement on new acquisition] is positive, the indication of acquisition is giving us a preview on the operational side of the business and the expected utilisation of AUM after the IPO,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.
The company is the first retail focused company to list on the Dubai Financial Market (DFM) and was the first to conduct an IPO since 2009. The company will commence trading on the DFM tomorrow.
The company offered 55 per cent of its shares, equivalent to 275 million shares, for an IPO, which was 36 times oversubscribed with a total value of Dh10.345 billion.
“It’s a new company with cash. They don’t have anything on the balance sheet except cash and the vision of the promoters,” Shurrab said.
The company’s founders are New York-Listed Chimera Investments, which holds the maximum of 11.11 per cent in the company, followed by Dubai Investments, which owns 6.67 per cent in the company. The founders own 45 per cent of the share capital.
