FAQ

DIVIDENDS-2

EMAAR DEVELOPMENT IPO-32

- When is the Emaar Development IPO happening?
  The subscription period for the UAE retail offer, where you can apply for shares in the offer, is expected to start on 2nd November 2017 and to close on 13th November 2017. The final price of the shares is expected to be determined on 16th November 2017.
- Should I subscribe to this IPO?
  You will need to discuss this with your bank or financial advisor.
- How much of the business will be offered in the IPO? Are these new shares being issued or secondary shares?
  
  • This IPO is a sale of existing shares in Emaar Development held by Emaar Properties.
  
  • 20% of Emaar Development is expected to be offered in the IPO.
  
  • Emaar Properties will retain the remaining stake.
- Why is Emaar Properties seeking to list its UAE real estate development unit?
  
  • Emaar Properties believes that the IPO will unlock the true value of its development business in the UAE.
  
  • The IPO will offer investors the opportunity to participate in a world class pure play UAE developer with a proven track record and high growth prospects.
  
  • The IPO decision is consistent with Emaar Properties’ stated strategy of bringing subsidiary companies to market once they have reached sufficient maturity.
- What will Emaar Properties do with the proceeds of the IPO?
  The proceeds of the IPO will be primarily distributed as a special dividend to Emaar Properties’ shareholders, subject to approval from its Board of Directors.
- What will be Emaar Development’s dividend policy? Is the dividend guaranteed?
  Emaar Development is targeting distribution of aggregate dividends of no less than US$1.7 billion, to be paid with respect to the next three financial years ending 31 December 2020. Any level or payment of dividends depends on future profits and the business plan of the company, among other factors, at the discretion of its Board of Directors.
- Why is Dubai Financial Market the chosen market for the IPO?
  The decision to IPO on DFM gives Emaar Development exposure to the region’s large community of sophisticated investors, whilst still being able to attract international capital.
- How will the value of the shares be determined?
  The shares will be priced using a standard bookbuild process with a final price determined by the company, the selling shareholder and their advisers.
- Who is eligible to participate in the Emaar Development IPO?
  UAE residents with an up-to-date National Investor Number registered with DFM.
- How can retail investors subscribe for shares in Emaar Development?
  
  • There are three ways for individual investors to subscribe to the IPO:
  
  1: Online, through the DFM eIPO platform for holders of an iVESTOR card.
  
  2: In person, through designated branches of the receiving banks, the names of which can be found on the microsite.
  
  3: Emirates NBD and Ajman Bank customers can subscribe directly through their Online Banking portal and ATMs.
  
  • Further details are provided below on the ‘How to Subscribe’ section of the microsite.
  
  • To subscribe to the IPO, investors need to ensure that they have an up-to-date National Investor Number (NIN) registered through DFM. For further information, please visit: www.dfm.ae or contact DFM’s IPO consumer helpline on: +971 4 305 5555 between 8.00am – 3.00pm, Sunday to Thursday.
- What is the minimum subscription?
  The minimum investment has been set at AED 10,000, with additional investments to be made in increments of at least AED 1,000.
- What is the maximum subscription?
  No maximum amount has been set.
- What is the subscription period?
  Subscription with respect to the UAE retail offer opens on 2nd November 2017 and will close on 13th November 2017.
- When is the latest time I can subscribe to the offer?
  
  • Subscriptions made by cheque will close on 11 November 2017 at 12:00pm.
  
  • Subscriptions through the UAE bank to bank funds transfer system will close on 12 November 2017 at 12:00pm.
  
  • Subscriptions made by ATM/online banking will close on 13 November 2017 at 2:00pm.
- Will retail investors be part of the book building / price setting process?
  No, there will be a price range published during the offer but the final price will be determined by the Company, the selling shareholder and their advisers.
- Is the allocation of my subscribed amount guaranteed?
  
  • The number of shares you receive will depend on the pricing and allocation decisions taken by the company, the selling shareholder and their advisers.
  
  • In case of over-subscription of the UAE retail offer, shares will be allocated to UAE retail offer investors pro rata to their subscription application amount based on the final offer price.
- When will I know the number of shares I have been allotted?
  A notice of your allocation is expected to be sent on 18 November 2017 by SMS and registered mail.
- If I do not receive full allocation, what is the process of refund?
  The surplus amount and any accrued interest will be returned to the subscribers account through which the payment of the original application amount was made.
- How long will it take to process the refunds?
  Depending on the method of payment of the original application we expect subscribers to receive refunds within five days from the date of allocation.
- When will the first day of trading be?
  Trading is expected to commence on Wednesday, 22nd November 2017.
- When will I be able to sell my shares?
  Shares in Emaar Development will be available to buy and sell from the first day of trading which is expected to be Wednesday, 22nd November 2017.
- What is the difference between Emaar Properties and Emaar Development?
  
  • Emaar Development is the UAE property development business of Emaar Properties. It is the developer of residential and commercial build-to-sell assets in the UAE.
  
  • The Company is behind iconic freehold master-planned communities in Dubai including Emirates Living, Downtown Dubai, Dubai Marina, and Burj Khalifa.
- What assets does Emaar Development own?
  Emaar Development is the developer of residential and commercial build-to-sell assets in the UAE. The Company is behind iconic freehold master-planned communities in Dubai including Emirates Living, Downtown Dubai, Dubai Marina, and Burj Khalifa.
- Will Emaar Properties compete with Emaar Development?
  
  • Emaar Development represents the next phase in Emaar’s journey as a market-leading property developer in the UAE. The Company will not compete with, but rather complement Emaar Properties’ wide range of offerings.
  
  • Emaar Development has right of first refusal on all Emaar Properties’ development projects in the country, and will establish a number of synergies with Emaar Properties as its parent company.
- What is Emaar Development’s NAV?
  Based on a third-party valuation by JLL, Emaar Development has a total Gross Asset Value (“GAV”) of AED 35.6 billion which corresponds to an Adjusted Net Asset Value (“Adjusted NAV”) of AED 24.1 billion as of September 2017.
- Who will be the key figures within Emaar Development management team?
  
  • Key figures within Emaar Development Management team include:
  
  ○ Chris O’Donnell, Chief Executive Officer
  
  ○ Sunil Grover, Chief Financial Officer
  
  ○ John Carfi, Chief Executive Officer, Development & Projects
  
  • For further information, please visit the Executive Team section at https://emaar.com/en/emaar-development-management
- Who will sit on Emaar Development’s Board?
  
  • Mohamed Alabbar will be Chairman of Emaar Development.
  
  • The Board will comprise seven individuals who will initially be appointed by Emaar Properties and subsequently elected by Emaar Development’s shareholders.
- What is the strategy of Emaar Development going forward?
  Emaar Development will continue to focus on being a pure developer of residential and commercial build-to-sell assets in the UAE, consolidating its leadership position in the country.
- Do I have special rights to invest as an Emaar Properties’ shareholder?
  No
- What will the share price be?
  The final share price will be determined by a book-building process, and will be announced after the subscription period ends on 16 November.
- Is this IPO Shari’a compliant?
  
  • Yes, the IPO is Shari’a compliant. There will be an official Fatwa published on the website
  
  • Emaar Development is a Shari’a-compliant business.
- How can I get leverage?
  As per the UAE Central Bank regulation, banks can provide leverage up to five times the amount contributed by the investor for subscription. Please call your banking relationship manager for further details.

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FAQ

DIVIDENDS-2

EMAAR DEVELOPMENT IPO-32

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