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Transcription

(To be carefully read by all investors)
x This Prospectus is primarily intended to furnish investors with the basic information that could help them to
invest in the Offer. Prior to applying for subscription, each investor must carefully examine and consider all
data included in this Prospectus as well as the Articles of Association of the Company to determine whether it is
appropriate to invest in the Offer Shares or not. Each investor must also consult his financial and legal advisor
on the investment in the securities offered for subscription. The Prospectus reader must note that words and
phrases stating that information is estimated and reliant on future assumptions indicates that it is uncertain data
and such future estimations cannot be entirely reliable. This Prospectus is subject to revision since it is not
possible to ascertain future circumstances causing a material difference between the actual and expected results.
x Investment in the Offer Shares may entail considerable risks. Therefore, the investor must not invest any funds
in this Offer unless he is able to bear the loss of his investment (kindly refer to section ''Risk Factors'').
x This Prospectus contains data submitted according to the issuance and disclosure rules issued by the UAE
Securities & Commodities Authority. All Founders and Board members whose names are stipulated in the
contents of this Prospectus shall be severally and jointly liable for the accuracy of information and data
contained therein and they must ensure to the best of their knowledge and belief, and upon doing due diligence
and conducting possible and reasonable investigations, that there have been no omissions of other material facts
or information that would mislead or affect the investment decision of subscribers.
x The information contained in this Prospectus shall not be subjected to revision or addition without securing the
approval of the UAE Securities & Commodities Authority and informing the public thereof by publication in a
daily newspaper according to the rules issued by the Authority.
x Offer Shares under this Prospectus is presented to the Authority for the purpose of offering shares in the United
Arab Emirates. In case shares are offered in another country, the Company shall take all procedures and
measures and obtain all approvals from the authorities concerned in such countries before offering the securities
therein.
x This Prospectus is not intended to constitute a financial promotion, an offer, sale or delivery of shares or other
securities under the Dubai International Financial Centre ("D I F C") Markets Law (DIFC Law No. 12 of 2004, as
amended) ("M ar kets L awRU XQGHU WKH 0DUNHWV 5XOHV ³M ar kets Rules´ RI WKH 'XEDL )LQDQFLDO 6HUYLFHV
Authority ("D FSA"). The Offering has not been approved or licensed by the DFSA, and do not constitute an
offer of securities in the DIFC in accordance with the Markets Law or the Markets Rules.
x This Prospectus does not constitute an offer to sell or an invitation by or on behalf of the Founders or the
Company to subscribe to any of the Shares in any jurisdiction outside of the UAE. This Prospectus may not be
distributed in any jurisdiction where such distribution is, or may be, unlawful. The Founders, Company,
Financial Advisor and the Receiving Banks require persons into whose possession this Prospectus comes, to
inform themselves of and observe all such restrictions.
x The information and opinions contained in the Prospectus and any other information or opinions subsequently
provided in connection with the Offering may not be published, duplicated, copied or disclosed in whole or in
part or otherwise used for any purpose other than in connection with the Offering without the prior written
approval of the Founders and the Financial Advisor.
x This Prospectus was approved by the UAE Securities & Commodities Authority on April 7, 2014. The
AXWKRULW\¶VDpproval of the Prospectus shall neither be deemed as an approval of the investment¶V feasibility nor
a recommendation of subscription, but it means only that the minimum subscription requirements according to
the issuance rules and information disclosure applicable to the prospectuses and issued by the Authority have
2 been met. The Authority shall not be held liable for the accuracy, completeness or sufficiency of the
information contained in this Prospectus, nor shall be held liable for any damage or loss suffered by any person
due to reliance upon this Prospectus or any part thereof.
x This Prospectus was issued in April 2014
N O T I C E T O US P E RSO NS
x The Offer Shares have not been and will not be registered under the Securities Act or with any securities
regulatory authority of any state or other jurisdiction in the US and may not be offered or sold within the US.
Neither the US Securities and Exchange Commission, any State securities commission nor any other regulatory
authority has approved or disapproved the securities nor have any of the foregoing authorities passed upon or
endorsed the merits of this offering or the accuracy or adequacy of this Prospectus. Any representation to the
contrary is a criminal offence in the US.
x This Prospectus may not be forwarded or distributed to any other person and may not be reproduced in any
manner whatsoever, and in particular, may not be forwarded to any US Person or to any US address. Any
forwarding, distribution or reproduction of this document in whole or in part is unauthorised. Failure to comply
with this directive may result in a violation of the Securities Act or the applicable laws of other jurisdictions.
3 PR ESE N T A T I O N O F F I N A N C I A L A N D O T H E R I N F O R M A T I O N
This Prospectus includes certain projections. The projections are based on the expectations of external conditions
and events relating to the Company and the retail (food and beverage and fashion) sector in the UAE and the rest of
the GCC in general. These projections are forward-looking statements that involve inherent risks and uncertainties.
Prospective Subscribers are cautioned that a number of important factors could cause actual results or outcomes
relating to the Company to differ materially from those expected in these projections. Please see the section entitled
³5LVN)DFWRUV´UHODWLQJWRDQLQYHVWPHQWLQWKH&RPSDQ\
,QWKLV3URVSHFWXVDOOUHIHUHQFHVWRµ'LUKDPV¶RUµ$('¶DUHWRWKHODZIXOFXUUHQF\RIWKH8$(DQGDOOUHIHUHQFHVWR
µ86 GROODUV¶ RU µ86'¶ DUH WR WKH ODZIXO FXUUHQF\ RI WKH 86$. Any discrepancies in the tables included herein
between the amounts listed and the totals thereof are due to rounding adjustments.
F O R W A R D-L O O K I N G ST A T E M E N TS
This Prospectus contains forward-ORRNLQJVWDWHPHQWVLQFOXGLQJVWDWHPHQWVDERXWWKH&RPSDQ\¶Vbeliefs and
expectations that are subject to inherent risks and uncertainties. All statements other than statements of historical or
current fact included in this Prospectus are forward-looking statements. Forward-looking statements express the
current assumptions, expectations and projections relating to industry trends and regional financial markets and
global economies and the condition, results of operations, plans, objectives, future performance and business of the
Company in the industry in which it will operate as well as expectations in relation to external conditions and events
relating to the Company and its operations and future performance. Prospective Subscribers can identify forwardlooking statements by the fact that they do not relate strictly to historical or current facts. The statements may
LQFOXGHZRUGVVXFKDV³DQWLFLSDWH´³HVWLPDWH´³EHOLHYH´³SURMHFW´³SODQ³LQWHQG´³SURVSHFWLYH´PD\´³VKRXOG´
³H[SHFW´³FRQWLQXH´DQGRWKHUZRUGVDQGWHUPVRIVLPLODUPHDQLQJLQFRQQHFWLRQZLWK any discussion of the timing
or nature of future operating or financial performance or other events.
As prospective Subscribers read and consider this Prospectus, they should understand that these statements are not
guarantees of future performance or results, and that they involve risks, uncertainties and assumptions. Prospective
Subscribers VKRXOGEHDZDUH WKDWPDQ\IDFWRUVFRXOGDIIHFWWKH&RPSDQ\¶VDFWXDOILQDQFLDOFRQGLWLRQRUUHVXOWVRI
operations and cause actual results to differ materially from those in the forward-looking statements. These factors
includeDPRQJRWKHUWKLQJVWKRVHGLVFXVVHGXQGHUWKH³5LVN)DFWRUV´VHFWLRQRIWKLV3URVSHFWXV
Because of these factors, prospective Subscribers are cautioned not to place undue reliance on any forward-looking
statements. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and
uncertainties arise from time to time, and it is impossible to predict these events or how they may affect the
Company. Except as required by the Companies Law, there is no duty or intention to update or revise the forwardlooking statements in this Prospectus after the date thereof.
4 7DEOHRI&RQWHQWV
EXHIBITS ................................................................................................................................................................ 6 DEFINITIONS .......................................................................................................................................................... 7 THE FOUNDERS .................................................................................................................................................... 10 THE OFFERING ..................................................................................................................................................... 17 EXECUTIVE SUMMARY ......................................................................................................................................... 25 LETTER OF THE FEASIBILITY STUDY REVIEWER ..................................................................................................... 31 RISK FACTORS ...................................................................................................................................................... 33 MANAGEMENT OF THE COMPANY ...................................................................................................................... 38 USE OF PROCEEDS................................................................................................................................................ 40 DIVIDEND POLICY ................................................................................................................................................ 41 DESCRIPTION OF THE SHARES .............................................................................................................................. 42 TAXATION ............................................................................................................................................................ 45 AUDITORS ............................................................................................................................................................ 46 KDWEz͛^WWZKy/DdE EXPENSES ................................................................................................................ 47 LEGAL MATTERS................................................................................................................................................... 48 COMPANY OVERVIEW ......................................................................................................................................... 49 INDUSTRY OVERVIEW .......................................................................................................................................... 57 5 E xhibits
EXHIBIT 1: MARKA FINANCIAL SNAPSHOT ........................................................................................................... 27 EXHIBIT 2: BALANCE SHEET (PRO-‐FORMA) ........................................................................................................... 28 EXHIBIT 3: PROFIT AND LOSS STATEMENT (PRO-‐FORMA) .................................................................................... 28 EXHIBIT 4: CASH FLOW STATEMENT (PRO FORMA) .............................................................................................. 29 EXHIBIT 5: SOURCES AND USAGE OF PROCEEDS ................................................................................................. 30 EXHIBIT 6: SWOT ANALYSIS ................................................................................................................................. 54 EXHIBIT 7: DUBAI GDP BREAKDOWN BY SECTORS (2011) .................................................................................... 55 EXHIBIT 8: MARKET CAP OF RETAILERS AND WHOLESALERS AS % OF GDP (2012) ............................................... 56 EXHIBIT 9: SNAPSHOT OF THE GCC RETAIL SECTOR .............................................................................................. 57 EXHIBIT 10: GROWTH IN POPULATION ................................................................................................................ 58 EXHIBIT 11: YOUTH AND EXPATRIATE POPULATION BY COUNTRY ....................................................................... 59 EXHIBIT 12: GDP PER CAPITA (PPP) COMPARISON (2012) .................................................................................... 59 EXHIBIT 13: GCC TOURIST ARRIVALS BY COUNTRY ............................................................................................... 60 EXHIBIT 14: EXPECTED GROWTH OF TOURIST ARRIVALS IN THE GCC ................................................................... 61 EXHIBIT 15: TOURISM SPENDING IN THE GCC ...................................................................................................... 61 EXHIBIT 16: VISA CARD SPENDING IN THE UAE BY THE TOP 10 INBOUND SOURCE MARKETS .............................. 62 EXHIBIT 17: GCC RETAIL SALES ʹ FORECAST & COMPOSITION .............................................................................. 64 EXHIBIT 18: GCC COUNTRIES FEATURING ON THE 2012 GLOBAL RETAIL DEVELOPMENT INDEX ........................... 64 EXHIBIT 19: COUNTRY-‐WISE CONTRIBUTION TO THE GCC RETAIL MARKET .......................................................... 65 EXHIBIT 20: COUNTRY-‐WISE RETAIL SALES GROWTH ........................................................................................... 65 EXHIBIT 21: COMPLETED GLA AND PROJECTED ADDITIONS IN THE GCC (2011) .................................................... 66 EXHIBIT 22: GLA PER CAPITA COMPARISON FOR THE GCC COUNTRIES (2011) ..................................................... 66 EXHIBIT 23: FORECAST OF OCCUPIED GLA IN THE GCC SHOPPING CENTERS......................................................... 67 6 D E F I N I T I O NS
AED
Arab Emirates Dirhams
Articles of Association
The Articles of Association of the Company as adopted by the Founders
Authority
Securities and Commodities Authority of the United Arab Emirates (also
UHIHUUHGWRDVWKH³6&$´
BHD
Bahraini Dinars
Board
The Board of Directors of the Company
CAGR
Compounded Annual Growth Rate
CAPEX
Capital Expenditure
Company
Marka (public joint stock company-under establishment in the UAE)
Companies Law
Federal Law No. 8 of 1984 concerning Commercial Companies, as amended,
and its implementing regulations
Competent Authority
The Department of Economic Development in Dubai and any ministry and/or
authority and/or governmental related entity as applicable
DFM
Dubai Financial Market
Directors
The members of the Board of Directors of the Company
Dirhams (or AED)
The lawful currency of the United Arab Emirates
EBITDA
Earnings Before Interest, Tax, Depreciation and Amortisation
ECAP
ECAP 1Limited
F&B
Food & Beverage
FF&E
Furniture, Fixtures & Equipment
Fils
The lawful currency of the United Arab Emirates (100 Fils equal one dirham)
Founders
The founding shareholders of the Company, whose names are listed at the
beginning of this Prospectus
Founders Committee
The persons as listed in the beginning of this Prospectus appointed to a
committee formed by the Founders to act on their behalf and to represent them
in carrying out the necessary tasks for the establishment and registration of the
Company
FY
Fiscal Year
GCC
Gulf Cooperation Council
GDP
Gross Domestic Product
GLA
Gross Leasable Area
Government
The Government of the United Arab Emirates
GRDI
Global Retail Development Index
IP
Intellectual Property
7 IPO
Initial Public Offering
IT
Information Technology
iVESTOR Card
A VISA pre-paid smart card issued for investors registered with DFM and
subject to the iVESTOR Card Terms and Conditions available on the DFM
official website (www.dfm.ae)
KPI
Key Performance Indicator
KSA
Kingdom of Saudi Arabia
KWD
Kuwaiti Dinars
Marka
Marka PJSC (under establishment in the UAE)
MBR
Mohammed Bin Rashid
Memorandum of Association
The Memorandum of Association of the Company as adopted by the Founders
MENA
Middle East and North Africa
Ministry
The Federal Ministry of Economy
Offer or Subscription
The public offer for subscription of up to 275,000,000 shares made pursuant to
this Prospectus and managed by the Founders
Offer Period
The period from April 13, 2014 to April 24, 2014 during which the Offer will
remain open
Offering
The present Initial Public Offering of the Company
Offering Costs
The fees paid by shareholders to cover the pre-incorporation expenses of the
origination and placement of the Company
OMR
Omani Rials
P&L
Profit and Loss
PoS
Point of Sale
PPM
Private Placement Memorandum
PPP
Purchase Power Parity
QAR
Qatari Riyals
Receiving Banks
National Bank of A bu Dhabi PJSC , Union National Bank PJSC, Dubai
Islamic Bank PJSC , A bu Dhabi Commercial Bank PJSC , Islamic F inance
House Pvt. JSC , Commercial Bank International PSC , F inance House
PJSC and National Bank of F ujairah PSC responsible for receiving the
subscription funds and issuing refund checks in case of over-subscription
SAR
Saudi Riyals
Shares
The ordinary shares of one (1) dirham each in the share capital of the Company
Shareholders
The holders of Shares; and ³6KDUHKROGLQJ´VKDOOEHFRQVWUXHGDFFRUGLQJO\
SPV
Special Purpose Vehicle
Sq. ft.
Square foot
8 Sq. m.
Square meter
SRM
Super Regional Malls
UAE
United Arab Emirates
UAE National
A person holding a UAE passport or khulasat al qayd, and business entities
incorporated, established or registered in the UAE
USD or US$
United States Dollars
WC
Working Capital
WE
Weekend
9 T H E F O U N D E RS
The Founders have subscribed to 225,000,000 of the Company's shares, representing 45% of the Company's capital
at a price of one Dirham per share, which have been fully paid up, including the applicable Offering Costs.
L ist of Founders
The Founders of the Company are:
Nationality
Nb Shares
O wnership
Percentage
Chimera Investments LLC
25,000,000
11.11%
Dubai Investments PJSC
15,000,000
6.67%
Ahmad Obaid Humaid AlMazrooei
10,500,000
4.67%
Sultanate Of Oman
10,000,000
4.44%
Gargash Investments LLC
10,000,000
4.44%
AbuBaker Seddiq Mohamed Hussain AlKhoori
5,000,000
2.22%
Saleh Mohammed Saleh Bin Nassra AlAmeri
5,000,000
2.22%
Ali Hamad Ali Hamad Lakhraim Al Zaabi
5,000,000
2.22%
Dr Omar Mohd Ahmed Bin Sulaiman AlMalik
5,000,000
2.22%
Kingdom of Saudi
Arabia
5,000,000
2.22%
JAFZA
5,000,000
2.22%
International Private Group LLC
3,000,000
1.33%
Mohamed Abdulla Jumaa AlQubaisi
3,000,000
1.33%
H.E. Saeed Ahmad Ghobash
3,000,000
1.33%
Sultanate Of Oman
3,000,000
1.33%
Essam AbdulAmir Hamadi AlFadhli AlTamimi
3,000,000
1.33%
HE AbdulRahman Mohamed Nassir AlOwais
3,000,000
1.33%
HE Saif Jaffar Suhail Markhan AlKetbi
3,000,000
1.33%
Khaled Salem Musabeh Humaid AlMheiri
2,500,000
1.11%
Ahmad AbdulKarim Mohd Julfar
2,000,000
0.89%
AlSoor Investments LLC
2,000,000
0.89%
Ahmed Mohd Ramadhan Al Rafei
2,000,000
0.89%
Founders
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Muscat Trading Company LLC
Salah Abdulhadi A AlQahtani
ECAP 1 Limited
Nilesh Kumar Nawal Meghji Ved
10 23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Mr. Jamal Mohd Matar Al Hai
2,000,000
0.89%
Khalid Jassim Mohd Bin Kalban
2,000,000
0.89%
State of Qatar
2,000,000
0.89%
Republic of India
2,000,000
0.89%
Saleh Abdulla Ahmed Saeed Alabdooli
2,000,000
0.89%
Awadh Tareef Mohamed Alktebi
2,000,000
0.89%
Mohammad Ahmad Saeed AlQassimi
2,000,000
0.89%
Mohammad AbdulKarim Mohammad Julfar
2,000,000
0.89%
H.E. Dr. Sultan Ahmed Sultan AlJaber
2,000,000
0.89%
Siddiq Mohamed Hussain AlKhoori
2,000,000
0.89%
Canada
2,000,000
0.89 %
2,000,000
0.89%
Sultanate Of Oman
2,000,000
0.89%
Arbah Investment LLC
1,500,000
0.67%
Wise Investment LLC
1,500,000
0.67%
HE Khalifa Saeed Mohd Ahmad Sulaiman
1,000,000
0.44%
Taryam Matar Mohamed Taryam
1,000,000
0.44%
Husain Ali Mohamed Abdulla AlSayegh
1,000,000
0.44%
Hamad Khlfan Ali Matar Al Shamsi
1,000,000
0.44%
Hamad Salem Mohamed Saeed AlAmeri
1,000,000
0.44%
Hamad Abdulla Rashed Obaid AlShamsi
1,000,000
0.44%
Sultan Ahmad Khalfan AlGhaith AlMarri
1,000,000
0.44%
AbdulHamied Ahmed Qassim Seddiqi
1,000,000
0.44%
Mazrui Investments, LLC
1,000,000
0.44%
Abdulla Ali Ebrahim Abdulla AlSaadi
1,000,000
0.44%
Ali Eid Khamis Thani AlMheiri
1,000,000
0.44%
Ali Mohammed Saeed Bujsaim
1,000,000
0.44%
Mubarak Matar Mubarak Balqubaa AlHemeiri
1,000,000
0.44%
Mohamed Hasan Abdulla Omran AlShamsi
1,000,000
0.44%
Cayman Islands
1,000,000
0.44%
Hussain Ali A A Al-Abdulla
Shirish Saraf Tej Bahadur Saraf
Elias Georges Chabtini
Amjad Mohamed Yusri Mahmoud AlDwaik
Samir Jimmy Fancy
Evolvence Asset Management Ltd
11 53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
Shahab Ahmad Lutfi Ali Harmoozi
1,000,000
0.44%
Khalid Mohammad Abdulla AlZahed
1,000,000
0.44%
Musallam Saeed Abdulla M. AlQubaisi
1,000,000
0.44%
Al Masar Holding LLC
1,000,000
0.44%
Ahmad Bin Eisa Bin Nasser AlSerkal
500,000
0.22%
Rashed Darwish Ahmed Saif Al Ketbi
500,000
0.22%
Tariq Khalifa al Meheiri
500,000
0.22%
Badr AbdelHameed Dhia Jafar
500,000
0.22%
Islamic Republic of
Pakistan
500,000
0.22%
Ahmed Khalifa Mohamed Obaid AlMehairi
500,000
0.22%
H.E. Ahmed Mohammed Rahmah AlShamsi
500,000
0.22%
Ahmad Mohamed Saif BinShafar
500,000
0.22%
Alhur Mohamed Hamad AlSuwaidi
500,000
0.22%
Amal AbdulRahman Abdulla AlJallaf AlQubaisi
500,000
0.22%
Lebanese Republic
500,000
0.22%
French Republic
500,000
0.22%
The Hashemite
Kingdom Of Jordan
500,000
0.22%
Jassem Mohamed Obaid Bu Ataba AlZaabi
500,000
0.22%
Jamal Saeed Saleh Mohammed AlNuaimi
500,000
0.22%
Jamal Mohammad Hassan Ali AlSharif
500,000
0.22%
The Hashemite
Kingdom Of Jordan
500,000
0.22%
Mr. Hussain Abdulla Ali AlShafar
500,000
0.22%
Hamad Mubarak Mohd BuAmim
500,000
0.22%
Khaled Abdulla Jumaa AlQubaisi
500,000
0.22%
Khaled Abdulla Haji Mohamed AlKhoori
500,000
0.22%
Khalifa Sultan Ahmed Sultan AlSuwaidi
500,000
0.22%
Rashed Mohamed Harmash AlMansoori
500,000
0.22%
Kingdom of Saudi
Arabia
500,000
0.22%
Nasir Ali Shah Bukhari Khadim Ali Shah
Iyad Malas
Boutros Boutros
Tamer Waleed Mohammad Bazzari
George Zaki George Mushahwar
Al Sayed Radi Saleh R
12 81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
500,000
0.22%
State of Kuwait
500,000
0.22%
Saeed Ahmed Saif Mohammed Belhasa
500,000
0.22%
Saeed Mohd Ahmad AlTayer
500,000
0.22%
Suhail Suhail Faris Ghanem AlMazrouei
500,000
0.22%
Saif Mohamed Ali Al Kmait AlHajeri
500,000
0.22%
Shareef Hashim Sayed Shareef Al Hashimi
500,000
0.22%
Shukri Salem Musabah Humaid AlMheiri
500,000
0.22%
Saqer Salem Mohamed Bin Ham Al Ameri
500,000
0.22%
State of Kuwait
500,000
0.22%
Tareq Abdulla Mohamed Saeed Al Muhannadi
500,000
0.22%
Tareq AbdulRaheem Ahmed Rashed AlHosani
500,000
0.22%
Kingdom of Saudi
Arabia
500,000
0.22%
Adel Hassan Mohamed Ali Al Nuwais
500,000
0.22%
Ayesha Mohd Ahmad Sulaiman
500,000
0.22%
AbdulAziz Ahmed Saleh AlSawaleh AlShehhi
500,000
0.22%
AbdulAziz Bin Yagub Bin Yousef AlSerkal
500,000
0.22%
Rashed Ahmed Salem AlGhanah AlGhafri
500,000
0.22%
AbdulHakeem Khalfan Rashed Khalfan AlShamsi
500,000
0.22%
Abdulla Ahmed Ebraheem Jasim AlHosani
500,000
0.22%
Ali Khalifa Ali Beyat AlFalasi
500,000
0.22%
Ali Khamis Ali Khalfan AlDhaheri
500,000
0.22%
Ali Nasser Saleh Lootah
500,000
0.22%
Fatma A. Mohamed Ahmed Bin A.H.AlKhazraji
500,000
0.22%
H.E. Falah Mohammed Falah Jaber M. AlAhbabi
500,000
0.22%
Fahad Sultan Mohd Ahmed Bin Sulaiman
500,000
0.22%
Fahad Abdulrahim Abdulla Kazim
500,000
0.22%
Mohammad A M N S ALQahtany
State of Kuwait
500,000
0.22%
Mohamed Habib Fekih
French Republic
500,000
0.22%
Sami Ahmad Dhaen AlQamzi
Saad M F T AlAjami
Tareq Khalid Ahmad AlHamad
Adel Esam A Ghazzawi
13 110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
Mohamed Khalfan Abdulla Sultan AlDhaheri
500,000
0.22%
Mohamed Rashed Mohamed H. AlMansouri
500,000
0.22%
The Hashemite
Kingdom Of Jordan
500,000
0.22%
Mohamed Saif Mohamed BinShafar AlMarri
500,000
0.22%
Mohammed Shelaiweeh Khalifa Y. AlQubaisi
500,000
0.22%
Mohammad AbdulRahman Abdulla Al Jallaf
500,000
0.22%
Mohamed Ali Mohamed AlShorafa AlHammadi
500,000
0.22%
Mohammad Yousuf AbdulGhafoor Abdulla Behrooziyan
500,000
0.22%
Mahmood Mahfoodh Mohamed Ali Al Junaibi
500,000
0.22%
Marwan Ahmad Lutfi Ali Harmoozi
500,000
0.22%
Muammar Ibraheem Mohamed AlHadeedi AlShamsi
500,000
0.22%
Muna Salem Musabbah Humaid AlMheiri
500,000
0.22%
Nader Ahmed Mohamed Ebrahim AlHammadi
500,000
0.22%
Nader Saleh Nasser Husain AlAwlaqi
500,000
0.22%
Nasser AbdulRahman Mohammad Rafi AlKhazraji
500,000
0.22%
Najeeb Mohammed Easa Mohammed AlAli
500,000
0.22%
Harjeev Singh Kandhari
Republic of India
500,000
0.22%
Harry George Sellwood
United Kingdom of
Great Britain and
Northern Ireland
500,000
0.22%
500,000
0.22%
United States of
America
500,000
0.22%
Zahra Mohd Hassan Ali AlSharif
500,000
0.22%
Hamad Hussain Ali AlSalman
500,000
0.22%
Mohammed Hamad Salem Rawda AlAmeri
500,000
0.22%
Arab Republic of Egypt
500,000
0.22%
500,000
0.22%
The Hashemite
Kingdom of Jordan
500,000
0.22%
500,000
0.22%
Moh'd Ra'ed Mahmoud Sharif AlBarqawi
Othman Seddiq Mohamed Hussain Al Khouri
Benjamin Jean Suk Lee
Mustafa Ahmed Talaat AbdelWadood
Abdulla Rashed Obaid AlShamsi
5DHG:DOLG0RK¶G6DTIHOKDLW
Dalmook Mohamad Humid Bin Dalmook AlFalasi
14 137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
Abdulla Hamad Saif Sultan AlAwani
500,000
0.22%
Humaid Sultan Jaber AlMutaiwei
500,000
0.22%
H.E. Mohamed Ahmed Hamel Khalfan Al Qubaisi
500,000
0.22%
Jamal Khalifa Ali Beyat AlFalasi
500,000
0.22%
Saif Ali Saif Ateeq AlQubaisi
500,000
0.22%
Mohamad Dalmook Mohamad Bin Dalmook AlFalasi
500,000
0.22%
Sultan Mohamed Ebrahim AlSaman AlNuaimi
500,000
0.22%
Mohammad Harib Fadhel AlMazrooei
500,000
0.22%
Abdulla Khalaf Ahmed Khalaf AlOtaiba
500,000
0.22%
Abdulla Mohammed Saeed Binkhediya AlMarar
500,000
0.22%
Yasser Mohd Saeed Bin Khediya
500,000
0.22%
Abdulla Majed Ahmad AlGhurair
500,000
0.22%
Abdulla Mohammed Ibrahim Obaidalla
500,000
0.22%
Sultan Helal Drai Yaser AlQubaisi
250,000
0.11%
Wassim Ghalayini
Republic of Lebanon
250,000
0.11%
225,000,000
Founders Committee
7KH )RXQGHUV KDYH HOHFWHG D FRPPLWWHH WKH ³Founders Committee´ WR WDNH DOO QHFHVVDU\ VWHSV DQG DFWLRQV RQ
their behalf or on behalf of the Company and to complete all required procedures with respect to the Offering,
including dealing with the relevant authorities.
The Founders Committee is comprised of the following 5 members, and is chaired by Mr. Jamal Al Hai.
Na me and Designation
Mr. Jamal Al Hai - Chairman
Mr. Khaled Almheiri ± Vice Chairman
Mr. Jamal Shaafar - Member
Mr. Abubaker Al Khoori ± Member
Mr. Hamad Al Shamsi - Member
The Founders Committee has already taken certain actions consistent with their rights and obligations pursuant to
applicable law and existing practice in order to, inter alia , incorporate the Company and appoint advisors in
connection with the Offering and the incorporation of the Company.
15 F irst Board of Directors
The Founders have appointed the first Board of Directors, which will comprise the following individuals.
Na me and Designation
Mr. Jamal Al Hai ± Independent Non-Executive Director
Mr. Khaled Almheiri ± Independent Non-Executive Director
Mr. Jamal Shaafar ± Independent Non-Executive Director
Mr. Abubaker Al Khoori ± Independent Non-Executive Director
Mr. Hamad Al Shamsi ± Independent Non-Executive Director
Mr. Mohammad AlQahtani - Independent Non-Executive Director
7KH&RPSDQ\¶V6KDUHKROGHUVshall deliberate during the constitutive general assembly to be convened pursuant to
the Offering, on the appointment of the First Board of Directors for a term of 3 (three) years.
16 T H E O F F ERIN G
K ey T erms of the O ffering
The Company
Capital
Offer Shares and Percentage of Share Capital
Offer Price
Offering Costs
Marka PJSC, under incorporation in the Emirate of
Dubai as a public joint stock company under the
applicable laws of the UAE.
7KH&RPSDQ\¶VFDSLWDOLV$('GLYLGHGLQWR
500,000,000 ordinary shares of AED 1 each. All the
shares are in cash and have equal rights.
275,000,000 ordinary shares, representing 55% of the
Shares.
AED 1 per Offer Share (with additional AED 0.03
Offering Costs per Offer Share. The Offer Price and
Offering Costs shall be payable in full upon
subscription).
In addition to the Offer Price of AED 1 per Offer Share,
Offering Costs in the amount of AED 0.03 per Offer
Share will be payable by the Subscribers for Offer
Shares.
The Offering Costs payable by the Subscribers will be
used towards, inter alia: (i) the settlement of the costs of
professional advisors relating to the structuring and
preparation of the Offering including lawyers, auditors,
managers and financial advisors; (ii) the costs and fees
associated with the solicitation, distribution and
processing of Offer Shares by, and the opening and
maintaining of bank accounts with, the Receiving Banks
in connection with the Offering; and (iii) other costs
associated with the Offering, including publishing,
printing, advertising, mailing and postage costs.
Offer Period
Receiving Banks
In the event the Offering Costs exceed the costs actually
LQFXUUHGWKHEDODQFHZLOOEHGHSRVLWHGLQWKH&RPSDQ\¶V
account.
The Offering will commence on April 13, 2014 and
close on April 24, 2014.
The Receiving Banks are the following:
National Bank of Abu Dhabi PJSC (800 2211 within
UAE and + 971 2 6666164 outside of the UAE)
Union National Bank PJSC (600 566 5565)
Dubai Islamic Bank PJSC (04-6092222)
Abu Dhabi Commercial Bank PJSC (800 2030)
Islamic Finance House Pvt. JSC (800 434)
Commercial Bank International PSC (800 224)
Finance House PJSC (800 3434)
National Bank of Fujairah PSC (800 8623)
Electronic Subscription
The DFM will make its official website www.dfm.ae
available to Subscribers with a national investor number
³1,1´ UHJLVWHUHG RQ WKH ')0 ZHEVLWH DQG KROGV D
valid iVESTOR Card for them to submit their electronic
subscriptions to the Lead Receiving Bank.
By
17 Eligibility For Subscription
Minimum Subscription
Maximum Share Ownership and Allotment
Allotment Policy
Use of Proceeds
Founders Lock-up Period
Distribution of Dividends
Voting Rights
Ownership Restrictions
Listing of the Shares
submitting the electronic subscription form the investor
is accepting the Offering terms and conditions and is
authorizing the iVESTOR Card issuing bank to pay the
total subscription amount, including the Offering Costs
by debiting the amount from the respective iVESTOR
Card and transferring the same to the IPO account held
at the Lead Receiving Bank, as detailed in the
Subscription Application.
The Offering will be open to UAE, GCC and non-GCC
individuals and institutional Subscribers and to
governmental authorities as described herein. Founders
are not permitted to subscribe for Offer Shares.
Minors are permitted to subscribe in accordance with the
procedures applied by the Receiving Banks and the laws
in force in this regard.
The minimum subscription for Offer Shares is set at
5,000 Offer Shares at AED 1 per Offer Share, in
addition to AED 0.03 per Offer Share in Offering Costs,
fully paid upon subscription. Any subscription
exceeding this minimum shall be in multiple(s) of 1,000
Offer Shares.
No shareholder of the Company may own more than 5%
RIWKH&RPSDQ\¶VVKDUHFDSLWDO2ZQHUVKLSRIVKDUHVLQ
excess of 5% will be void.
In case of over-subscription on offered Shares, the
Shares must be proportionately distributed to the
Subscribers. Allocation shall be to the nearest complete
share provided that none of the shareholders, as a result
of the allocation, be deprived of participating in the
Company irrespective of the number of shares
subscribed to save for the shares subscribed to by the
Ministry of Finance (if any).
The Company expects to use the proceeds towards
capital expenditure for roll out of retail stores and
restaurant outlets. The Company also expects to utilize
some of the proceeds for financing of working capital
and general corporate purposes.
As per applicable UAE laws, Shares held by the
Founders will be subject to a mandatory lock-up period
extending from the date of the incorporation of the
&RPSDQ\ XQWLO WKH DQQRXQFHPHQW RI WKH &RPSDQ\¶V
audited financial statements relating to the second
financial year following such incorporation. A Founder
will not be allowed to sell or transfer Shares during such
period, except to another Founder(s).
Dividends, if any, shall be distributed in accordance with
the recommendations of the Board of Directors and
approval of the general assembly.
All Shares are of the same class and shall carry equal
voting rights and shall rank pari passu in all other rights
and obligations.
A minimum of 51% of the Shares of the Company shall
be held by UAE/GCC nationals and/or legal entities.
Following the Offering and the finalization of the
18 &RPSDQ\¶V$GYLVRUV
Risk Factors
incorporation of the Company with the relevant
Authorities in the UAE, the Company will submit an
application to list all of its Shares on the DFM as per its
requirements. Trading in the Shares on the DFM will be
effected on an electronic basis through the DFM Share
Registry.
CAPM Investment PJS
Please review section related to the Risk Factors from
page 34 to page 38
Receiving Banks
With the exception of the DFM, the only persons authorized to distribute Subscription Applications for the Offer
Shares on behalf of the Company are the Receiving Banks. Distribution and collection of all Subscription
Applications and orders and collection of proceeds during the Offer Period shall be performed solely by and
processed through the Receiving Banks, and notification of the final allocation of Offer Shares and the refund of
proceeds for unallocated Offer Shares (if any) following the closing of the Offer Period and prior to the listing of the
Shares shall be performed solely by, and processed through, the Receiving Banks.
E lectronic Subscription
The DFM will make its official website www.dfm.ae available to Subscribers with a NIN registered on the DFM
website and holds a valid iVESTOR Card for them to submit their electronic subscriptions to the Lead Receiving
Bank. By submitting the electronic subscription form the investor is accepting the Offering terms and conditions
and is authorizing the iVESTOR Card issuing bank to pay the total subscription amount, including the Offering
Costs by debiting the amount from the respective iVESTOR Card and transferring the same to the IPO account held
at the Lead Receiving Bank, as detailed in the Subscription Application. Notification of the final allocation of Offer
Shares and the refund of proceeds for unallocated Offer Shares (if any) following the closing of the Offer Period and
prior to the listing of the Shares shall be performed solely by, and processed through, the Lead Receiving Bank.
Neither the DFM, the Founders, the Board, the Lead Receiving Bank nor the iVESTOR Card issuing bank shall in
anyway be liable for the use of the electronic subscription facility by the Subscriber nor the debiting of the
iVESTOR Card by the iVESTOR Card issuing bank, in respect of all and any losses or damages suffered, directly or
indirectly as a result of the electronic subscription facility and/or the iVESTOR Card.
This disclaimer appears on the DFM website at www.dfm.ae and shall be considered an integral part of this section.
A llotment Policy
7KH 2IIHULQJ RI WKH &RPSDQ\¶V 6KDUHV LV RSHQ WR ERWK 8$( DQG *&& Subscribers and non-GCC Subscribers,
subject to GCC share ownership restrictions (51% GCC nationals and 49% non-GCC nationals).
In case of over-subscription on offered Shares, the Shares must be proportionately distributed to the Subscribers.
Allocation shall be to the nearest complete share provided that none of the shareholders, as a result of the allocation,
be deprived of participating in the Company irrespective of the number of shares subscribed to save for the shares
subscribed to by the Ministry of Finance (if any). The Founders shall refund all amounts paid on un-allotted shares
in addition to the proceeds generated thereon. In all cases, no more than 5% shall be allotted to each Subscriber in
DFFRUGDQFHZLWKWKH&RPSDQ\¶V0HPRUDQGXPDQG$UWLFOHVRI$VVRFLDWLRQ.
,QDFFRUGDQFHZLWKWKH8$(&RXQFLORI0LQLVWHUV¶5HVROXWLRQ1RRIWKH8$(0LQLVWU\RI)LQDQFH³0R)´
or the Emirates Investment Authority have the right to subscribe for 5% of the Offer Shares. This percentage shall
be allocated to the MoF in full before commencing allocation of shares for other Subscribers in accordance with
Article 80 of the Companies Law.
19 A llotment Notices and Refunds
Should the total size of subscriptions exceed the number of Shares offered, then the Founders will allot the Shares
according to the allotment policy specified above and will refund to Subscribers the excess subscriptions inclusive
of the associated Offering Costs and all proceeds generated thereon. The Founders will refund rejected Subscription
Applications, if any, for the full amount, including associated Offering Costs.
The Founders will notify Subscribers in writing of their Share allocation on the date of allotment and start of refunds
on 8 May 2014. All allotment notices and cheque refunds will be sent through Empost, at the 6XEVFULEHU¶VULVN at the
address provided in the Subscription Application. The excess subscriptions inclusive of the associated Offering
&RVWV DQG DOO SURFHHGV JHQHUDWHG WKHUHRQ VKDOO EH UHLPEXUVHG WKURXJK D EDQNHU¶V FKHFN LVVXHG E\ WKH 5HFHLYLQJ
Bank or by a bank transfer WRWKH6XEVFULEHU¶Vaccount at the Receiving Bank RUWRWKH6XEVFULEHU¶VL9(6725&DUG
in the event subscription is made using said Card.
8SRQ OLVWLQJ RI WKH &RPSDQ\¶V 6KDUHV RQ WKH ')0 WKH )RXQGHUV ZLOO UHSODFH DOORWPHQW QRWLFHV E\ DQ HOHFWURQLF
system as applicable on the DFM. The information contained in this electronic system will be binding and
irrevocable, unless otherwise specified in the applicable rules and procedures governing the DFM.
O ffering T imetable
The dates set out below are indicative only of the expected timing of certain key events relating to the Offering. The
Founders reserve the right to change any of the dates or times and/or shorten or extend the time periods in
accordance with applicable UAE law and after obtaining the approval of the official authorities.
- April 13, 2014: Commencement of the Offering.
- April 24, 2014: Closing Date.
- From April 13, 2014 to April 24, 2014: During the Offer Period, copies of the Prospectus, the Subscription
$SSOLFDWLRQVDQGWKH&RPSDQ\¶V0HPRUDQGXPand Articles of Association will be made available to prospective
6XEVFULEHUVDWWKH5HFHLYLQJ%DQNV¶EUDQFKHV
- From April 25, 2014 to May 7, 2014: The processing of Subscription Applications by the Receiving Banks
involves the allocation of the Offer Shares amongst all those Subscribers who have duly completed such
Subscription Applications and transferred/deposited the corresponding amounts with the relevant Receiving
Banks.
- May 8, 2014: As of this date, a notification will be sent to all Subscribers of the total amount of Offer Shares
allocated to them and the refunding of any surplus to Subscribers who have subscribed for Offer Shares in excess
of Offer Shares allocated to them in addition to all the proceeds generated thereon.
Within thirty days following the Closing Date, the requisite notice for calling for the constitutive general assembly
of Shareholders of the Company shall be sent to Shareholders. E ligibility for Subscription
This Offering is open to UAE, GCC and non-GCC Subscribers.
3XEOLFVXEVFULSWLRQWRWKH&RPSDQ\¶V6KDUHVLVUHVWULFWHGWRWKHIROORZLQJ
1-Individuals who are citizens of the UAE, GCC or any other country (with the exception of US Persons within the
meaning under the Securities Act of 1933, as amended). Minors are permitted to subscribe in accordance with the
procedures applied by the Receiving Banks and the laws in force in this regard;
20 2-Sole proprietorships and companies owned by citizens of the UAE, the GCC, or any other country regardless of
the nationality of these entities, with the exception of US Persons (within the meaning under the Securities Act of
1933, as amended);
3-In DFFRUGDQFH ZLWK WKH 8$( &RXQFLO RI 0LQLVWHUV¶ 5HVROXWLRQ 1R RI WKH 8$( 0LQLVWU\ RI )LQDQFH ,QGXVWU\³M oF´KDVWKHULJKWWRVXEVFULEHIRURIWKH2IIHU6KDUHVDQG
4. Public bodies and authorities of the Federal government of the UAE or any one of the Emirates or any country
within the GCC or any other country; according to the terms and conditions set forth in this Prospectus.
Subscriptions Submitted by Representatives
Any Subscriber may delegate a representative who may fill out the Subscription Application and attach and submit
the required documents, along with the payment amount, to any of the Receiving Banks, on behalf of the Subscriber.
The Subscription Application must be accompanied by a true copy of a properly-notarized power of attorney by
UAE-regulated persons/bodies: such as a notary public or as otherwise duly regulated in the country, granting the
representative the right to subscribe on behalf of the Subscriber and to receive the allotment notice and the refund
amount (the representative must submit the original power of attorney for verification).
Subscription A pplications
Each Subscriber may submit one Subscription Application only in his or her personal name (unless he or she is
acting as a representative for another Subscriber). In case a Subscriber submits more than one application in his or
her personal name, the Lead Manager shall disqualify all the subscription applications submitted by this Subscriber
and not to allot any shares to this Subscriber.
Sole proprietorships are considered identical to their proprietors and as a result the proprietor of a sole proprietorship
may not subscribe simultaneously in his personal capacity and through a sole proprietorship. In case a Subscriber
subscribes simultaneously in his personal capacity and through a sole proprietorship then the two Subscription
Applications shall be dealt with as one Subscription application, or otherwise the two Subscription Applications
presented by that Subscriber will be disqualified and no shares will be allotted to that Subscriber. .
Minors are permitted to subscribe in accordance with the procedures applied by the Receiving Banks and the laws in
force in this regard.
Subscribers must complete all of the relevant fields in the subscription application form along with all required
documents and submit it to any Receiving Bank together with the subscription amount during the subscription
period.
The completed Subscription Form should be clear and fully legible. If it is not, the Receiving Bank shall refuse to
accept the Subscription Application from the Subscriber until the latter satisfies all the required information or
documentation.
Subscription for shares requires accepting the Memorandum and Articles of Association and complying with all the
UHVROXWLRQV LVVXHG E\ WKH &RPSDQ\¶V JHQHUDO DVVHPEO\ $Q\ FRQGLWLRQV DGGHG WR WKH DSSOLFDWLRQ VKDOO EH GHHPHG
null and void. No photocopies of subscription applications shall be accepted. The subscription application should
only be fully completed after perusal of this Prospectus and the Company Memorandum and Articles of Association.
,WWKHQQHHGVWREHVXEPLWWHGWRDQ\RIWKH5HFHLYLQJ%DQNV¶EUDQFKHVPHQWLRQHGKHUHLQ7KH6XEVFULEHUVRUWKHLU
representatives shall affirm the accuracy of the information contained in the application in the presence of the bank
representative in which the subscription was made. Each subscription application shall be clearly signed or certified
by the Subscriber or his representative.
Documents A ccompanying Subscription A pplications
Subscribers shall submit the following documents along with their subscription applications:
21 Individuals who are UAE Nationals
1. The original and a copy of the national family book ( khulasat al qayd) including the first page, the page
that contains the details of the family head, and the page that contains the details of the subscriber;
2.
The original and a copy of a valid passport copy or Emirates ID; and
3.
In case the signatory is different from the Subscriber:
a.
b.
c.
the duly notarized power of attorney held by that signatory or a certified copy by one of the following
UAE-regulated persons/bodies: a notary public or as otherwise duly regulated in the country;
the original passport of the signatory for verification of their signature and a copy of the original
passport; and
the items specified in 1 and 2 above in respect of the Subscriber.
Individuals who are G C C Nationals or National of Any Country
1.
The original and a copy of a valid passport copy; and
2.
In case the signatory is different from the Subscriber:
a.
b.
c.
the duly notarized power of attorney held by that signatory or a certified copy by one of the following
UAE-regulated persons/bodies: a notary public or as otherwise duly regulated in the country;
the original passport of the signatory for verification of their signature and a copy of the original
passport; and
the items specified in 1 above in respect of the Subscriber.
For Companies and Sole Proprietorships
1.
The original and a copy of a trade license or commercial registration for verification or a certified copy by
one of the following UAE-regulated persons/bodies: a notary public or as otherwise duly regulated in the
country;
2.
The original and a copy of the document that authorizes the signatory to sign on behalf of the Subscriber
and to represent the Subscriber, to submit the application, and to accept the terms and conditions stipulated
in this Prospectus and in the subscription form; and
3.
The original and a copy of the passport of the signatory.
Location of Subscription for Shares
6XEVFULSWLRQIRUVKDUHVPD\EHPDGHWKURXJKWKHIROORZLQJ5HFHLYLQJ%DQNV¶EUDQFKHV
National Bank of Abu Dhabi PJSC, Union National Bank PJSC, Dubai Islamic Bank PJSC, Abu Dhabi Commercial
Bank PJSC, Islamic Finance House Pvt. JSC, Commercial Bank International PSC, Finance House PJSC and
National Bank of Fujairah PSC.
Payment Methods
The Subscription Application must be submitted to any of the Receiving Banks listed in this Prospectus, together
with the payment for the shares subscribed for and is to be paid by one of the following ways:
1.
2.
Certified bank cheque drawn on a bank operating in the UAE LQ IDYRU RI ³0DUND 3-6& XQGHU
incorporation)".
Account transfer IURP WKH 6XEVFULEHU¶V DFFRXQW at a Receiving Bank to the subscription account opened
with the same Receiving Bank)XQGVWREHWUDQVIHUUHGLQIDYRURI³0DUND3-6&XQGHULQFRUSRUDWLRQ´
22 3.
iVESTOR Card via the DFM website through the electronic subscription process as stated above in
accordance with the Key Terms of the Offering.
Neither the Company nor the Lead Manager, nor the Founders, nor the Receiving Banks shall assume liability for
any applications paid by any method other than those described above.
The subscription may not be paid in cash.
The bank in which the subscription is made will issue to the Subscriber a subscription receipt which the Subscriber
must keep until the Subscriber receives the allotment notice. The last copy of the subscription application after being
submitted, signed, and stamped by the Receiving Bank shall be considered as a receipt for subscription. This receipt
shall include the data of the Subscriber, number of shares subscribed to, amount paid, details of the payment method,
and date of subscription.
If the address of the Subscriber is not filled in correctly or legibly, the Lead Manager, the Receiving Banks and the
Founders take no responsibility for non-receipt of such allotment. The Subscribers should follow up with the
Receiving Banks to ensure refund of their monies.
E xtension of Subscription Period
If Offer Shares are not fully subscribed within the specified subscription period, the Founders may extend the
subscription period in accordance with the Companies Law and with the approval of the Competent Authority.
6XEVFULEHUV¶2EOLJDWLRQV
SubVFULEHUV DJUHH WR EH ERXQG E\ WKH WHUPV DQG FRQGLWLRQV FRQWDLQHG LQ WKLV 3URVSHFWXV WKH &RPSDQ\¶V
Memorandum and Articles of Association, and the Subscription Application form. The Lead Manager, the Founders
and the Company will deem any condition attached to any Subscription Application as null and void. By
subscribing for and owning shares of the Company, Subscribers agree to accept the Memorandum and Articles of
$VVRFLDWLRQ DQG UHVROXWLRQV LVVXHG E\ WKH &RPSDQ\¶V JHQHUDO DVVHPEOLHV 8SRQ FRPSOHWLRQ DQG submission of
Subscription Applications, each Subscriber shall be deemed to have acknowledged and accepted the following:
1.
2.
3.
4.
5.
6.
7KH6XEVFULEHUKDVDSSOLHGWRSXUFKDVHWKHQXPEHURIWKH&RPSDQ\¶VVKDUHVVSHFLILHGLQWKHVXEVFULEHU¶V
application (or as allotted to him after the closing of the subscription period), based on and according to the
FRQGLWLRQVVWDWHGLQWKLV3URVSHFWXVDQGWKH&RPSDQ\¶V0HPRUDQGXPDQG$UWLFOHVRI$VVRFLDWLRQ
The Subscriber undertakes to pay the amounts due and acknowledges that the Company will not release
any shares allotted to the Subscriber or any funds that the Subscriber might be owed until the Subscriber
settles all outstanding payments.
The Subscriber has authorized the Founders and the Receiving Banks to send to the Subscriber the
DOORWPHQWQRWLFHDQGWKHUHIXQGHGDPRXQWE\PDLODWWKH6XEVFULEHU¶VRZQULVNRUWRWKHVDPH5HFHLYLQJ
Bank where the Subscriber submitted their subscription (if the Subscriber indicates this on the application).
The Subscriber has undertaken not tRZLWKGUDZFDQFHORUPRGLI\WKH6XEVFULEHU¶VDSSOLFDWLRQDWDQ\WLPH
after submission at a Receiving Bank.
The Subscriber is responsible for the truthfulness, accuracy, and completeness of all information and
documents submitted as part of the VXEVFULSWLRQDSSOLFDWLRQLQFOXGLQJWKH6XEVFULEHU¶VQDWLRQDOLW\DQGDJH
7KH6XEVFULEHUKDVDVFHUWDLQHGWKDWWKH6XEVFULEHU¶VVXEVFULSWLRQFRPSOLHVZLWKWKHODZVRIWKHMXULVGLFWLRQ
where the Subscriber resides and the laws of the jurisdiction to which the subscriber belongs. The
6XEVFULEHUVKDOOEHDUDOOUHVSRQVLELOLW\DQGOLDELOLW\DULVLQJLQFDVHWKH6XEVFULEHU¶VVXEVFULSWLRQGRHVQRW
comply with the laws of the jurisdiction where the subscriber resides or the laws of the jurisdiction to
which the Subscriber belongs.
Incorporation of the Company
The Company is being incorporated as a public joint stock company pursuant to its Memorandum and Articles of
Association and the Companies Law. The SCA granted their preliminary approval for the incorporation of the
Company on March 20th, 2013. Following the Offering, the Founders will complete all procedures necessary for
the completion and finalization of the incorporation of the Company and its registration with the relevant authorities
23 and governmental agencies in the UAE. Following the closing of the Offering and the completion of the allotment of
Offer Shares, the constitutive general assembly of shareholders shall be held. The agenda for this general assembly
shall include a discussion on the incorporation of the Company, approval of the first Board of Directors and
appointment of auditors and any other business that may be lawfully transacted at such Assembly.
L isting of the Shares
Subsequent to the Closing Date and the finalization of the incorporation of the Company, the Company will submit
an application to the SCA to list all of its Shares on the DFM in accordance with the requirements of the SCA and
WKH')07UDGLQJLQWKH6KDUHVZLOOEHHIIHFWHGRQDQHOHFWURQLFEDVLVWKURXJKWKH')0¶VVKDUHUHJLVWry, with the
FRPPHQFHPHQWRIVXFKWUDGLQJHVWLPDWHGWRWDNHSODFHDIWHUFRPSOHWLRQRIWKHUHJLVWUDWLRQSURYLGHGWKDWWKH')0¶V
records are suitably complete, accurate and satisfactory to allow the listing of and trading in the Shares.
24 E X E C U T I V E SU M M A R Y
The following summary is qualified in its entirety by, and is subject to the detailed information contained elsewhere
in this Prospectus. This summary may not contain all the information that Subscribers should consider before
deciding to invest in the Offer Shares. Accordingly, any decision by a Subscriber to invest in the Offer Shares should
be based on a consideration of this Offering as a whole. Subscribers should read this entire Prospectus carefully,
including the Risk F actors section, before making any decision to invest in the Offer Shares.
T he Company
The Founders intend to develop Marka as a leading retail operator in the GCC region, with a primary focus on Dubai
and Abu Dhabi in the UAE.
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LQ WKH 8$( 7KLV LV H[SHFWHG WR SURYLGH LQYHVWRUV ZLWK WKH RSSRUWXQLW\ WR EHQHILW QRW RQO\ IURP WKH VLJQLILFDQW
JURZWKRSSRUWXQLWLHVLQWKHVHFWRUEXWDOVRIURPLQGXVWU\GLYHUVLILFDWLRQ
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LQYHVWPHQW VWUDWHJ\ LQFOXGHV LQWURGXFLQJ IUDQFKLVHV RI JOREDOO\ HVWDEOLVKHG EUDQGV DV ZHOO DV RSSRUWXQLVWLFDOO\
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T he O ffering
The Offering is of 55% of the Shares of the Company at an Offer Price of AED 1 per Offer Share (with additional
AED 0.03 Offering Costs). Prior to this Offering, the Shares of the Company were not offered in any market.
Following the offering and the completion of the incorporation process, the Company will apply to list its Shares on
the DFM. The Offering is open to UAE, GCC and non-GCC individual and institutional subscribers in accordance
with the terms and conditions mentioned in the Offering section of this Prospectus below.
The SCA has approved the publication of this Prospectus. The Shares have not been registered with any other
regulatory authority in any other jurisdiction.
Use of Proceeds
The Company expects to use the proceeds towards capital expenditure for roll out of fashion retail stores and
restaurant outlets. The Company also expects to utilize some of the proceeds for financing of working capital and
general corporate purposes.
F inancial Y ear
The financial year of the Company will start on January 1st and end on December 31st of each year. The first
financial year of the Company will start upon the issuance of the Ministerial Decision declaring the incorporation of
the Company and end on December 31st of the following year.
Dividend Policy
Holders of the Shares will be entitled to receive dividends declared in respect of the first financial year, if any, and
subsequent financial years, if any in accordance with the recommendations of the Board of Directors and approval
of the general assembly.
The Company intends to declare and distribute annual dividends with a view to maximizing shareholder value
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25 Articles of Association, any decision to pay dividends to shareholders and the amount of such dividends will be at
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assembly. The amount and percentage of any dividends may vary from year to year. The declaration of dividends
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profitability and general financial performance, the condition of the market and the general economic climate, and
other factors, including regulatory considerations.
F inancial O verview
The Company plans to open retails stores and restaurants under its Fashion Retail and F&B divisions, respectively,
by setting up franchises of well-known global brands. The Company intends to roll out the retail stores and
restaurants, first within the UAE and then followed by fast growing cities in Saudi Arabia, Kuwait and Qatar.
Additionally, the Company may also develop its own brands at a later stage; however, it is expected to initially
operate only under a franchise model.
The Company believes that the key drivers to ensure the success of its operations are in place within the GCC. These
fundamentals include growth in population, favorable demographics, increasing disposable income, surging tourism
sector, and the continued modernization of the retail and F&B industry.
The Company plans on a rapid rollout of stores under Fashion Retail across UAE and the overall GCC region
through different formats including luxury apparel, accessories, sports merchandize and airport concessions. The
Company also plans on a rapid rollout of F&B outlets under different formats, including mid to high end dining
options across global cuisines through contemporary restaurants and cafes. The Company plans on opening
franchises of reputable brands across the GCC, with UAE as the primary market.
The restaurants and fashion outlets are expected to be set up in various high end malls, shopping districts and high
street locations over the next five years to capitalize on the significant growth in the retail industry in UAE and the
larger GCC region. Summary Pro Forma F inancials
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Expected F inancial Performance
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26 The Company expects EBITDA and net profit to increase from AED -10 mn and AED -15 mn, respectively, in Year
1 to AED 134 mn and AED 65 mn, respectively, in Year 5.
The Company expects to incur capital expenditure to the amount of AED 356 mn by Year 3 to facilitate the rollout
of its Fashion Retail and F&B stores. The capital will be primarily used to fund fit-outs for all the stores, and
payments of brand franchise fees as well as store franchise fees to the franchisors. The Company expects to utilize
AED 73 mn for financing working capital up to Year 2.
The charts and tables below summarize the projected financials of the Company.
E xhibit 1: M ar ka F inancial Snapshot
Projected G ross Profit & G ross Profit M argin
Projected Revenue G rowth
AED mn
503 600 324 166 189 Year 1
Year 2
335 56.5%
300 216 549 472 56.0%
111 Retail
Year 4
55.5%
158 27 34 92 Year 1
Year 2
-‐
Year 3
261 227 100 329 41 68 57.0%
397 200 109
-‐
57.1%
400 56.1%
355
200 57.5%
57.3%
500 595 400 57.5%
600 800 653
58.0%
57.7%
975
1,000 AED mn
700 1,144
1,200 Year 5
55.0%
F&B
Year 3
Retail
Year 4
F&B
Year 5
Gross profit margin (%)
Projected Net Profit & Net Profit M argin
Projected E B I T D A & E B I T D A M argin
15.0%
150 10.8%
11.7%
5.7%
130 10.0%
5.0%
65 8.8%
90 76 5.5%
58 70 0.0%
50 3.7%
1.4%
5.0%
AED mn
110 AED mn
10.0%
85 0.0%
33 45 -‐2 .7%
-‐5.0%
15 25 31 30 47 10 9 10 27 Year 2
Year 3
Retail
F&B
58 Year 1
Year 1
Year 4
EBITDA m argin (%)
Year 5
-‐10.0%
1 8 21 Year 3
Year 4
5 -‐8 .9%
(10)
32 -‐1 4.2%
-‐5.0%
Year 2
-‐10.0%
-‐15.0%
Year 5
(15)
-‐20.0%
Retail
F&B
Net profit margin (%)
27 E xhibit 2: Balance Sheet (Pro-Forma)
(nu mbers are in AE D)
Cash Balance
Receivables
Inventory
Prepayments
Ttl Cur rent Assets
Projected B alance Sheet
Year 1
Year 2
Year 0
Year 3
Year 4
Year 5
415,179,411
5,368,973
5,851,415
426,399,800
285,042,581
4,013,744
19,035,149
17,097,595
325,189,070
185,796,912
12,393,363
38,403,961
30,241,939
266,836,175
111,963,628
22,435,507
59,474,042
43,663,768
237,536,945
173,228,211
33,471,519
76,116,509
50,337,712
333,153,951
265,111,400
39,111,090
84,204,100
55,371,483
443,798,073
70,535,000
70,535,000
172,613,000
(14,107,000)
158,506,000
261,774,000
(48,629,600)
213,144,400
355,574,900
(100,984,400)
254,590,500
362,479,420
(172,099,380)
190,380,040
372,950,380
(244,595,264)
128,355,116
496,934,800
483,695,070
479,980,575
492,127,445
523,533,991
572,153,189
132,300
132,300
2,351,161
2,351,161
8,039,534
8,039,534
16,147,003
16,147,003
26,387,781
26,387,781
35,231,346
35,231,346
Capital
Retained Earnings
Ttl Shareholders Equity
500,000,000
(3,197,500)
496,802,500
500,000,000
(18,656,091)
481,343,909
500,000,000
(28,058,959)
471,941,041
500,000,000
(24,019,558)
475,980,442
500,000,000
(2,853,790)
497,146,210
500,000,000
36,921,843
536,921,843
Ttl Shareholders Equity & Liabilities
496,934,800
483,695,070
479,980,575
492,127,445
523,533,991
572,153,189
Gross Fixed Assets
Accumulated Depreciation
Ttl Non-cur rent Assets
Ttl Assets
Payables
Long Term Debt
Ttl Liabilities
E xhibit 3: Profit and Loss Statement (Pro-For ma)
Projected Income Statement
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
1,155,584,577
Sales
-
110,171,486
358,315,276
659,676,210
985,139,255
Credit Card Commission
-
1,101,715
3,583,153
6,596,762
9,851,393
11,555,846
Net Sales
-
109,069,771
354,732,123
653,079,448
975,287,862
1,144,028,731
Cost of Goods Sold
-
40,785,944
129,684,631
237,848,955
352,063,668
414,414,517
Royalty Fees
-
3,848,879
13,109,373
24,417,317
36,532,936
42,808,781
Inventory Writedown
-
3,265,728
9,323,038
16,577,403
24,305,739
28,770,018
Gross Profit
-
61,169,219
202,615,082
374,235,773
562,385,520
658,035,415
Staff Salaries
-
16,053,671
55,915,345
104,833,164
158,834,637
186,497,880
Rent
-
19,345,441
59,642,182
105,749,705
154,266,104
173,676,462
General & Admin
-
8,286,430
26,651,300
48,781,040
72,626,423
84,819,239
Advertising Expenses
-
1,924,361
6,900,490
13,042,381
19,844,079
23,329,865
Miscellaneous Expenses
-
2,280,495
7,455,466
13,620,315
20,278,562
23,416,172
Ttl Store O perating Expenses
-
47,890,398
156,564,782
286,026,605
425,849,805
491,739,618
Store Level EB ITD A
-
13,278,821
46,050,300
88,209,168
136,535,714
166,295,797
HO Overheads
5,697,500
22,934,000
26,631,420
30,530,905
31,494,239
32,488,844
Company Level EB ITD A
(5,697,500)
(9,655,179)
19,418,880
57,678,263
105,041,475
133,806,953
Interest Income (Expense)
2,500,000
Depreciation
Net Profit (Net Loss)
(3,197,500)
8,303,588
5,700,852
3,715,938
2,239,273
3,464,564
14,107,000
34,522,600
52,354,800
71,114,980
72,495,884
(15,458,591)
(9,402,868)
9,039,402
36,165,768
64,775,633
28 E xhibit 4: C ash F low Statement (Pro Forma)
Net Profit
Add:
Depreciation
Increase in Payables
Deduct:
Increase in Receivables
Increase in Inventory
Increase in Prepayments
Projected Cash Flow Statement
Year 0
Year 1
Year 2
(3,197,500)
(15,458,591)
(9,402,868)
Year 3
9,039,402
Year 4
36,165,768
Year 5
64,775,633
132,300
14,107,000
2,218,861
34,522,600
5,688,373
52,354,800
8,107,469
71,114,980
10,240,779
72,495,884
8,843,565
(5,368,973)
(5,851,415)
(4,013,744)
(13,666,176)
(11,246,180)
(8,379,619)
(19,368,812)
(13,144,343)
(10,042,144)
(21,070,081)
(13,421,829)
(11,036,012)
(16,642,468)
(6,673,943)
(5,639,571)
(8,087,591)
(5,033,771)
Wor k ing Capital Requi rements
(11,088,089)
(26,707,239)
(35,204,401)
(36,426,586)
(24,111,644)
(9,917,368)
Cashflows from O perations
(2,500,000)
(16,785,589)
(8,303,588)
(36,362,418)
(5,700,852)
(15,785,521)
(3,715,938)
21,251,678
(2,239,273)
80,929,831
(3,464,564)
123,889,585
Capital Expenditures
Cashflows from Investments
(70,535,000)
(70,535,000)
(102,078,000)
(102,078,000)
(89,161,000)
(89,161,000)
(93,800,900)
(93,800,900)
(6,904,520)
(6,904,520)
(10,470,960)
(10,470,960)
5,700,852
5,700,852
3,715,938
3,715,938
2,239,273
2,239,273
3,464,564
3,464,564
Capital Injection/ (Withdrawal)
Change in Long Term Funding
Cashflows from Financing
2,500,000
502,500,000
8,303,588
8,303,588
Change in Cashflow
Beginning Cash Balance
Ending Cash B alance before Dividend
415,179,411
415,179,411
(130,136,830)
415,179,411
285,042,581
(99,245,669)
285,042,581
185,796,912
(68,833,284)
185,796,912
116,963,628
76,264,583
111,963,628
188,228,211
116,883,189
173,228,211
290,111,400
415,179,411
285,042,581
185,796,912
5,000,000
111,963,628
15,000,000
173,228,211
25,000,000
265,111,400
Proposed Dividends
Ending Cash Balance After Dividend
500,000,000
29 Sources and Usage of Proceeds
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DOORFDWHGWRZDUGVJHQHUDOFRUSRUDWHSXUSRVHV
E xhibit 5: Sources and Usage of Proceeds
SU M M A R Y
A E D mn
Source of Proceeds - IP O
500.0
Usage of Proceeds
500.0
M ar ka F ashion Retail C apex
133.0
M ar ka F & B C apex
222.6
Total C apital E xpenditure Requirements
355.6
Wor king C apital Requirements
73.0
General Corporate Requirements
71.4
30 R IS K F A C T O RS
An investment in the Offer Shares may be subject to a number of risks. Before deciding whether to invest in the Offer
Shares, prospective Subscribers should carefully consider and HYDOXDWH WKH ULVNV LQKHUHQW LQ WKH &RPSDQ\¶V
proposed business, including the risks described below, together with all other infor mation contained in this
Prospectus. Such risks could have an adverse effect on the Company's business and financial condition or results. In
such case, a Subscriber could lose all or part of his or her investment. Additional risks and uncertainties may also
have an adverse effect on the Company's proposed business. It should be noted that the following risk factors are
not comprehensive, as additional risks and uncertainties not presently known or that the Company currently
believes to be immaterial may also have an impact on the Company and its operations. If any of these uncertainties
GHYHORSLQWRDQDFWXDOHYHQWWKH&RPSDQ\¶V operations and actual results could differ materially from the financial
projections contained in this Prospectus. It should also be noted that the Company intends to undertake steps and/or
measures necessary in order to mitigate the risks referred to below (apart from those that may be caused by factors
WKDWDUHEH\RQGWKH&RPSDQ\¶VFRQWUROLQFOXGLQJLQSDUWLFXODUIDFWRUVRIDSROLWLFDODQGHFRQRPLFQDWXUH
Nevertheless, Subscribers should carefully read the risks described below. Prospective Subscribers should consider
carefully whether an investment in the Offer Shares is suitable for them in light of the information in this Prospectus
and their personal circumstances.
5LVNV5HODWLQJWRWKH&RPSDQ\¶V2SHUDWLRQV
No Track Record
Due to the start-up nature of the Company, it does not yet have an established track record. Its prospects and the
projections included in this Prospectus should be considered in the light of the risks associated with companies in
general in their early stages of growth. Accordingly, any investment in the Offer Shares carries with it the usual
risks associated with investing in the early stages of development of a new business. The Company's planned
growth will place additional demand on its management, administrative and technological resources. If it is unable
to manage its growth effectively, its business operations or financial condition may be adversely affected.
Dependence on Key Personnel
The Company will depend on the services of key management in line with the strategy to be set by its Board of
Directors. The loss of the services of any of the key management could have a material adverse effect on the
Company 's future business, operations and financial results.
Non-Performing Brands
The Company is committed to bringing major brands in the fashion and food and beverage areas available from
around the world into the GCC markets. It is very unusual for a particular brand to fail from the start, but this can
occur at times and some brands may decline over a number of years, due to competitive activity or lack of partner
support. In order to mitigate this risk, the Company may have to take decisions to discontinue certain brands, where
future prospects are limited, in order to maintain the profit performance of the Company.
Unprofitable Stores
Depending on various external factors including change in market conditions, geographic concentration, customer
behaviour or fashion/restaurant trends, some stores/restaurants may not perform as was initially expected in which
tiPH WKH &RPSDQ\ PD\ FKRRVH WR VKXW GRZQ RU PRGLI\ WKHVH VWRUHVUHVWDXUDQWV WR PHHW WKH &RPSDQ\¶V RYHUDOO
objectives.
Terminal Stock
,QWKHIDVKLRQUHWDLOEXVLQHVVRQHRIWKHELJJHVWULVNVLVWKHIDVKLRQUHWDLOHUV¶DELOLW\WRVHOOLWVSURGXFWV Redundant
stock at planned levels ties up capital and impacts the potential growth of the business. The Company shall seek to
sell its merchandise within the season it is purchased. It is important for a fashion retailer to clear its merchandise,
using markdown and reduced margin to keep its aged stock in line, otherwise its cash flow would be affected and the
business would find it difficult to continue trading. This risk may be mitigated by certain suppliers selling to the
Company on a consignment basis or having stock buy-back agreements with the Company.
33 Expansion Strategy
7KH &RPSDQ\¶V ILQDQFLDO FRQGLWLRQ DQG IXWXUH JURZWK FRXOG EH DGYHUVHO\ DIIHFWHG LI LWV H[SDQVLRQ VWUDWHJ\ LV
XQVXFFHVVIXO 7KH &RPSDQ\¶V DELOLW\ WR PDQDJH WKLV H[SDQVLRQ ZLOO GHSHQG RQ WKH Lts ability to implement and
improve operational, financial and management information systems on a timely basis and to train, motivate, expand
and manage the workforce. Failure to increase sales in existing and/or new markets may result in the Company not
being able to recover distribution, promotional and marketing expenses, as well as administrative costs incurred in
developing such markets.
Limitation Imposed by F ranchisors
It is common for international franchise agreements to include non-competition clauses restricting a local franchisee
from representing other principals that sell products that compete with the foreign principals' products. Some of the
franchise agreements to which the Company may become a party may include such non-competition clauses. If any
such non-competition clauses are breached, the relevant foreign principal may be allowed to consider the Company
to be in default of the entire franchise agreement, which may lead to the early termination of such agreement.
Exchange and Interest Rate Risk
Fluctuations between the value of the United Arab Emirates Dirham and foreign currencies may have an adverse
HIIHFW RQ WKH FRVWV DQG SURILWV RI WKH &RPSDQ\ 7KH &RPSDQ\¶V RSHUDWLRQV LQYROYH WKH SXUFKDVH RI JRRGV
denominated in currencies other than the United Arab Emirates Dirham, principally the US Dollar, Pound Sterling
and Euro. The Company, as part of its hedging strategy may not hedge all of its currency exposure. An unfavourable
shift in exchange rates or interest rates would have a negative impact.
The Company shall maintain its accounts and report its results in AED. The United Arab Emirates Dirham is
FXUUHQWO\³SHJJHG´WRWKH86 Dollar. The Company may set up retail stores and F&B outlets in various geographic
regions and may earn incomes in the local currencies of those geographic regions. Fluctuations in foreign currency
vis-à-vis the US Dollar or the United Arab Emirates Dirham, or any de-pegging of the United Arab Emirates Dirham
from the US Dollar PD\KDYHDQLPSDFWRQWKH&RPSDQ\¶VSURILWV
Launch of New Concepts
3DUWRIWKH&RPSDQ\¶VJURZWKVWUDWHJ\PD\LQYROYHODXQFKLQJQHZFRQFHSWVDQGSURGXFWRIIHULQJOLQHV7KHODXQFK
of a new concept generally is characterized by relatively high start-up costs. However, the Company cannot
guarantee that all new concepts will be profitable, and the start-up costs will be recovered. The launch of a new
concept generally is characterized by relatively high start-up costs.
Staffing Issues
An expatriate workforce forms the backbone of the retail sector with large and small retailers relying a great deal on
migrants from Asian and non-GCC MENA nations. Attrition rates may be high amongst expatriates since many of
them return to their own countries after making significant savings. Increasing wages and a lack of a specialised
workforce poses a further risk to operational success.
A mismatch between industry requirements and skills taught, and little inclination in pursuing service-oriented and
customer-facing jobs have led to high unemployment rates among the local population in the region. The situation is
especially a concern in Saudi Arabia, Bahrain, and Oman. While local employment programs floated by
governments could elevate employments levels, some positions may still remain vacant due to shortage of skilled
local labor while companies may also have limited ability to employ expatriate staff owing to regulatory restrictions.
Risks Related to the M ar ket
Market Share for New Brands
Consumer preferences change, and should the Company fail to anticipate, identify or react to these changes could
UHVXOW LQ UHGXFHG GHPDQG IRU WKH &RPSDQ\¶V SURGXFWV 7KH VXFFHVV RI QHZ SURGXFWV LQWURGXFHG GHSHQGV RQ WKH
&RPSDQ\¶V DELOLW\ WR DQWLFLSDWH WKH WDVWHV DQd habits of consumers and to offer brands that appeal to their
preferences. There can be no assurance that the Company will be able to gain market acceptance or significant
market share for the new brands introduced.
34 Competitive Environment
There can be no assurance that the Company will be able to compete effectively against future competitors and
changes in the competitive environment may result in price reductions, reduced margins or loss of market share, any
of which could materially adversely affect tKH &RPSDQ\¶V SURILW PDUJLQV &RPSHWLWLRQ PD\ OHDG FRPSHWLWRUV WR
increase their advertising expenditures and promotional activities and/or to engage in irrational or predatory pricing
behavior.
Increasing rents
The global financial crisis and a fall in consumer confidence prompted some mall owners to lower rentals in the
GCC. This was especially true in the cases of older and poorly performing properties which experienced falling
sales and occupancy levels. Given that lease rentals form a significant portion of overall costs in the retail sector,
weakness in rental rates lent support to the profits of retailers. However, with the industry quickly back on its growth
path, rentals have started to move up in top-tier malls. A recent survey by Cushman & Wakefield covering over 300
prime locations in 62 countries ranked Dubai as the 40th most expensive retail area in the world. This is a big jump
for the emirate due to the surge in retail rentals from 2011 as it did not even feature on the list the prior year. As
global economic uncertainty gradually recedes and consumer sentiments gain traction in the future, rental expenses
are expected to surge further. These upward revisions in rental rates at major malls might squeeze margins.
Counterfeit Products
The market for counterfeit products has increased over the last several years in the GCC. Ranging from apparel to
pharmaceuticals and consumer electronics, these products not only pose health hazards and damage brand
reputations of several leading firms, but also remain unaccounted for in the financial system making them difficult
to track. A thriving parallel market warrants strict regulatory intervention, and governments across the GCC have
implemented measures to check trades of counterfeit products in the retail sector.
Dependence on Food Imports
Several GCC countries experienced shortages in the supply of cereals when commodity prices increased globally
during 2007±08. The regular exporting countries to the region curbed supplies of various food commodities to meet
domestic demand during the period. Export restrictions led to panic which further fuelled food price increases. High
prices pushed inflation in the GCC higher from 5.3% in 2006 to 10.7% in 2008.
Excessive food inflation was seen to be a major cause of social unrest in the MENA region during 2007±08.
Containing inflation remains one of the biggest fiscal challenges in the GCC.
A sustained uptrend in food prices and consumption can pose serious threats to the social and political stability of
the GCC, which imports more than 90% of its food requirements. Food production in the region is minimal due to
less available arable land and water and unfavorable weather conditions. In contrast, food requirements have been
rising due to population growth, rising income levels, and urbanization. The UAE is the most import-dependent
country for food in the GCC, while Saudi Arabia is the least reliant on food imports. The issue of food security has
become vital for the region.
Risks Related to O rdinary Shares
Absence of Prior Trading Market; Potential Volatility of Stock Price
Following the Offering, and the finalization of the incorporation of the Company, the Company will apply to list its
Shares on the DFM. Prior to the Offering, there has been no public market for the Shares and there can be no
assurance that an active trading market for the Shares will develop or, if developed, that such market will be
maintained after such listing. If an active trading market is not developed or maintained, the liquidity and trading
prices of the Shares could be adversely affected. Subscribers in the Offering may not be able to resell their Shares at
or above the Offer Price due to a number of factors, including variations between actual and anticipated operating
results, changes in or failure to meet earnings estimates of securities analysts, market conditions in the industry,
regulatory actions and general economic conditions. Sharp market fluctuations may adversely affect the trading
price of the Shares on the DFM regardless of the actual operating performance of the Company. Additionally,
several factors can affect the prices of traded securities and their volatility. These factors include, but are not limited
to:
- changes in operating results;
- downturn in the economy;
35 - slowdown in the growth of the Company; and /or
- announcement of new product offerings and services from competitors
Distribution of Dividends
subsequent financial years, if any in accordance with the recommendations of the Board of Directors and approval
of the general assembly. The Company intends to declare and distribute annual dividends with a view to maximizing
shareholder value commensurate with the investment requirements of the Company. Subject to the applicable laws
DQGWKH&RPSDQ\¶V$UWLFOHVRI$VVRFLDWLRQDQ\GHFLVLRQWRSD\GLYLGHQGVWRVKDUHKROGHUVDQGWKHDPRXQWRIVXFK
dividends will be at the discretion and upon the recRPPHQGDWLRQRIWKH&RPSDQ\¶V%RDUGRI'LUHFWRUVDQGDSSURYDO
of the general assembly. The amount and percentage of any dividends may vary from year to year. The declaration
RIGLYLGHQGVPD\DOVREHLQIOXHQFHGE\RWKHUIDFWRUVLQFOXGLQJWKH&RPSDQ\¶VEXVLQess prospects, working capital
requirements, profitability and general financial performance, the condition of the market and the general economic
climate, and other factors, including regulatory considerations.
Control Risk
After the successful completion of the Offering, the Founders will continue to own, in aggregate, 45 percent of the
Shares until at least the expiry of the Lock-Up Period and consequently will retain a significant degree of control
over the Company and its operations. Following the successful completion of the Offering, the Founders will
appoint all members of the initial Board for a period of three years.
Regulatory Risk
Following the Offering and the allotment of the Offer Shares, the Founders will proceed with the necessary steps
and requirements for the purpose of completing its incorporation as a public joint stock company, prior to the
H[SHFWHG OLVWLQJ RI WKH &RPSDQ\¶V 6KDUHV RQ WKH ')0 $OWKRXJK WKH &RPSDQ\ EHOLHYHV WKDW LW PHHWV DOO SUHrequisites for the completion of such incorporation and it has received preliminary approval for incorporation from
WKH6&$DQGVXEVHTXHQWDSSURYDOWRSURFHHGWRWKH2IIHULQJWKH³ nashrat al-ektetab´WKHUHFDQEHQRDVVXUDQFH
that these pre-requisites will be satisfactory to the relevant authorities, that the incorporation of the Company as a
SXEOLFMRLQWVWRFNFRPSDQ\ZLOOEHFRPSOHWHGDQGRUWKDWWKH&RPSDQ\¶V6KDUHVZLOOEHOLVWHG
Risk factors relating to the E conomy and Political C limate
Growth of UAE and G C C Economies
7KH &RPSDQ\¶V UHYHQXH Zill be derived from offerings it will provide in the UAE and the greater GCC, and
therefore the performance of the Company is linked to the economic environment of the UAE. Any downtrend in the
economy of UAE could impact the growth of the Company, as the &RPSDQ\¶VUHYHQXHVZLOOLQLWLDOO\EHFRQWLQJHQW
on its operations in the UAE. Any negative effect on the domestic industry or general economic condition of the
8$(FRXOGKDYHGHWULPHQWDOHIIHFWVRQWKH&RPSDQ\¶VSHUIRUPDQFH
Oil Price Risk
The GCC regional economies are heavily reliant on oil and accordingly, the future oil price scenario will determine
to a large extent the economic conditions in the region. While oil prices are currently at historic highs and GCC
economies have witnessed rapid growth on the back of high oil prices, any downturn in oil prices may have a
GDPSHQLQJHIIHFWRQUHJLRQDOJURZWKDQGWKHUHE\RQWKHJURZWKRIEXVLQHVV$VWKH&RPSDQ\¶VEXVLQHVVHPDQDWHV
in part from the oil & gas and the infrastructure sector, such a fall in oil pULFHVPD\LPSDFWWKH&RPSDQ\¶VEXVLQHVV
and growth.
Political Risk
The operations and earnings of the Company and their suppliers may in the future be affected in varying degrees by
political instability and by other political or international developments and laws and regulations, such as forced
divestiture of assets, sanctions, restrictions on production, imports and exports; military or other international
conflicts; civil unrest and local security concerns that threaten the safe operation of Company facilities; price
controls, expropriation of property, or revision or cancellation of contract rights.
36 L egal Risks
Companies Law
Any change in the current Companies Law or any other relevant law governing the Company or its operations may
have a material impact on the structure of the Company and on its Shareholders. The Company is unable to forecast
what these changes will be and how they will impact its operations.
Taxes
No income taxes will initially be levied on the Company's operations that take SODFHLQWKH8$(7KH&RPSDQ\¶V
profits arising from its operations in the UAE might change should the tax laws of the UAE change. Subscribers
should note, however, that any future operations of the Company outside the UAE may be subject to taxes.
Forward-looking Statements
As mentioned in the Forward-Looking Statements section above, this Prospectus contains forward-looking
VWDWHPHQWVLQFOXGLQJVWDWHPHQWVDERXWWKH&RPSDQ\¶VEHOLHIVDQGH[SHFWDWLRQVWKDWDUHVXEMHFWWRLQKHUHQWULVNVDQG
uncertainties. These statements express the current assumptions, expectations and projections of the Company.
These statements are not guarantees of future performance or results, and involve risks and uncertainties, some of
which are beyond the control of the Company, and assumptions as to future events that may not prove to be accurate.
0DQ\IDFWRUVFRXOGDIIHFWWKH&RPSDQ\¶VDFWXDOILQDQFLDOFRQGLWLRQRUUHVXOWVRIRSHUDWLRQVDQGFDXVHDFWXDOUHVXOWV
to differ materially from those expressed or implied by such forward-looking statements. These factors include but
are not limited to, the following:
x
changes in the general political, economic and business conditions in the UAE and/or the GCC;
x
changes in the laws or policies of governments or other governmental or quasi-governmental activities in
the UAE and/or the GCC;
x
prevalence of a competitive pricing environment and the introduction of competing services by other
similar entities;
x
changes in currency exchange rates, interest rates and inflation rates; and/or
x
changes in the business strategy of the Company and various other factors
37 M A N A G E M E N T O F T H E C O M PA N Y
M anagement
The management of the Company shall rest in a Board of Directors, which shall consist of 6 (six) members elected
by an Ordinary General Meeting by secret cumulative voting. The composition of the Board of Directors shall at all
times comply with the required balance between Executive, Non-Executive and Independent Directors.
The Non-Executive Directors will consist of individuals who have experience in the relevant fashion and food
LQGXVWULHVDQGZLOOEHFRQFHUQHGZLWKDPRQJRWKHUPDWWHUVPLQRULW\VKDUHKROGHUV¶ULJKWVDQGFRUSRUDWHJRYHUQDQFH
3XUVXDQWWRWKH&RPSDQ\¶V$UWLFOHVRI$VVRFLDWLRQDQGDVDQH[Hmption from the above said method of election, the
Founders have appointed the first Board of Directors consisting of the following individuals who have been
DSSRLQWHGWRWKH&RPSDQ\¶VILUVW%RDUGIRUD\HDUWHUP
1.
H.E. JAMAL MOHD MATAR AL HAI, U A E National, holder of passport number 0027083, his address
P O Box 2525, Dubai, United A rab E mirates (Independent Non-E xecutive M ember ).
2.
MR. KHALED SALEM MUSABEH HUMAID ALMHEIRI, U A E National, holder of passport number
Z25P22166, his address P O Box 31309, Dubai, United A rab E mirates (Independent Non-E xecutive
M ember).
3.
MR. JAMAL ABDULLA ALI ALSHAAFAR, U A E National, holder of passport number A2314844, his
address P O Box 3945, Dubai, United A rab E mirates (Independent Non-E xecutive M ember).
4.
MR. ABUBAKER SEDDIQ MOHAMED HUSSAIN AL KHOORI, U A E National, holder of passport
number A0000692, his address P O Box 4394, A bu Dhabi, United A rab E mirates ( Independent NonE xecutive M ember).
5.
MR. HAMAD ABDULLA RASHED OBAID AL SHAMSI, U A E National, holder of passport number
C J H275299, his address P O Box 6481, A bu Dhabi, United A rab E mirates (Independent Non-E xecutive
M ember).
6.
MR. MOHAMMAD ALQAHTANI, U A E National, holder of passport number 003212371, his address P O
B O X 482013, Dubai, United A rab E mirates (Independent Non-E xecutive M ember).
The duties and role of the Board include, among other matters:

the appointment of a senior management team;

the opening of branches and the creation of affiliates;

the setting of corporate policy on investment, finance and personnel;

the approval of major investments, joint ventures, asset sales and major expenditures;

the approval of basic policies and procedures, business plans and annual budgets, expense controls,
approval of limits and delegation of responsibilities;

WKH PRQLWRULQJ RI WKH &RPPLWWHHV DQG WKH &RPSDQ\¶V FRPSOLDQFH ZLWK DSSOLFDEOH ODZV UHJXODWLRQV DQG
guidelines; and

the setting of performance criteria and the retention, compensation and dismissal of senior management.
38 Corporate Governance
The corporate governance requirements applicable to joint stock companies listed on the DFM are set out in the
Governance Rules and Corporate Discipline Standards issued on 29 October 2009, pursuant to Ministerial Decree no.
518 (the " Governance Rules" ) and will apply to the Company. These requirements include, inter alia :
x
the majority of the Board of Directors must be comprised of non-executive directors, and at least one third of
the Board of Directors must be independent in line with the requirements of the Governance Rules;
x
the Board of Directors must hold a minimum of 6 (six) meetings each year;
x
an Audit Committee must be established with at least three Non-Executive Directors, at least two of whom
shall be independent;
x
a Nomination and Remuneration Committee must be established with at least three Non-Executive Directors, at
least two of whom shall be independent;
x
the Company will be required to submit an annual report to the SCA which will include the Company's
compliance with the Governance Rules, any violations which have taken place during the year and the Board of
Director's review of the internal audit system; and
x
the Company will be required to adopt a code of conduct for its Directors and employees.
Committees
The Company wishes to ascertain that principles of corporate governance would be followed by the Management in
the course of its operations.
Board Committees are planned to be established with clear missions, authorities and responsibilities. The
CommitteeV¶ UHVSHFWLYH DXWKRULWLHV VKDOO JHQHUDOO\ EH RI D FRQVXOWDWLYH QDWXUH ZLWK DOO UHFRPPHQGDWLRQV ZKLFK
require Board approval being submitted through the Chairman for review, decision and ratification. The Company
shall have several functional Committees including the Follow Up and Remuneration Committee and the Audit
Committee as more fully described below. However, the full Board will be fully appraised of all decisions governing
WKH&RPSDQ\¶VRYHUDOORSHUDWLRQVDVVXEPLWWHGDQGUHFRPPHQGHGE\WKHYDULRXVCommittees.
Audit Committee: The Audit Committee shall monitor, on a quarterly basis, the compliance of the Company with the
%RDUG¶VSROLFLHVDQGZLWKDSSOLFDEOHODZVDQGUHJXODWLRQV7KLV&RPPLWWHHVKDOOZRUNFORVHO\ZLWKWKH&RPSDQ\¶V
auditors, both internal and external. Amongst its responsibilities, the Audit Committee shall approve the yearly audit
plan, ensure the adequacy and effectiveness of the internal control system, review the internal control policies, and
assess the findings and action plans developed by the auditors of the Company.
Follow up and Remuneration Committee : This Committee shall deal with all personnel and compensation policies,
organization structure and all other matters relating to management and other employees of the Company.
Internal Controls
Upon listing, the Company will establish an internal audit department which will report directly to the Board of
Directors. The duties of the internal audit department will include the assessment of the Company's risk
management procedures and the assessment of the Company's implementation and compliance with the Governance
Rules and other applicable laws and regulations, including the Company's internal policies. The internal audit
department will also be responsible for reviewing the financial information of the Company.
In addition, the Company will appoint a compliance officer with responsibility for the assessment of the Company's
and its employees' compliance with applicable laws and regulations.
39 USE O F PR O C E E DS
The Company expects to use the proceeds towards capital expenditure for roll out of retail stores and restaurant
outlets. The Company also expects to utilize some of the proceeds for financing of working capital and general
corporate purposes.
40 D I V I D E N D PO L I C Y
subsequent financial years, if any upon the recommendation of the Board of Directors and approval of the general
assembly. The Company intends to declare and distribute annual dividends with a view to maximizing shareholder
value commensurate with the investment requirements of the Company. Subject to the applicable laws and the
&RPSDQ\¶V$UWLFOHVRI$VVRFLDWLRQDQ\GHFLVLRQWRSD\GLYLGHQGVWRVKDUHKRlders and the amount of such dividends
ZLOO EH DW WKH GLVFUHWLRQ DQGXSRQ WKH UHFRPPHQGDWLRQ RI WKH &RPSDQ\¶V %RDUG RI 'LUHFWRUV DQG DSSURYDO RI WKH
general assembly. The amount and percentage of any dividends may vary from year to year. The declaration of
GLYLGHQGV PD\ DOVR EH LQIOXHQFHG E\ RWKHU IDFWRUV LQFOXGLQJ WKH &RPSDQ\¶V EXVLQHVV SURVSHFWV ZRUNLQJ FDSLWDO
requirements, profitability and general financial performance, the condition of the market and the general economic
climate, and other factors, including regulatory considerations.
41 D ESC R IP T I O N O F T H E SH A R ES
&HUWDLQLQIRUPDWLRQUHODWLQJWRWKH6KDUHVLQFOXGLQJDVXPPDU\RIFHUWDLQSURYLVLRQVRIWKH&RPSDQ\¶V$UWLFOHVRI
Association is set out below.
Share C apital
The total capital of Marka PJSC (under incorporation) is AED 500,000,000 divided as follows:
)RXQGHUV¶VKDUH$('
,32VXEVFULEHUV¶VKDUH$('
The price per share in Marka PJSC (under incorporation) is AED 1 (one) in addition to the Offering Costs.
Share C apital Increases and Pre-emption Rights
Pursuant to the applicable provisions of the Companies Law and the Articles of Association, the share capital of the
Company may be increased by a resolution of the extraordinary general assembly pursuant to a recommendation of
the Board of Directors. Such resolution must state the amount of the increase of the share capital and the issue value
of the Shares issued. However, the Company's share capital may not be increased until the original capital is fully
paid.
The increase of capital may take place in one of the following ways: (i) the issuing of new Shares; (ii) the merging
of the reserve into the share capital; or (iii) the conversion of debentures into sSares. New Shares shall be issued
with a nominal value equal to the nominal value of the original Shares.
The extraordinary general assembly may resolve to add a premium to the nominal value of the Shares and specify its
amount provided that the approval of the SCA is obtained. This premium should be contributed to the legal reserves
even if it will thereby exceed half of the capital.
The Shareholders shall have priority in the subscription for the new Shares. Any provisions to the contrary in the
Articles of Association or in the resolution adopted to increase the share capital shall be void.
The chairman of the Company's Board of Directors shall publish in two local daily newspapers in Arabic an
announcement informing the Shareholders of their priority in the subscription for the new Shares, the dates of the
subscription period and the price of the new Shares. The Shareholders must inform the Company within such period
of their desire to purchase such Shares. The Shareholders are allowed to purchase new Shares in proportion to their
existing Shares in the Company. The remaining Shares may be purchased by Shareholders who wish to purchase
more than their proportion. Any remaining Shares shall be offered to the public.
Rights Attaching to Shares
Shares are indivisible. Each Share VKDOOJLYHLWVKROGHUHTXDOULJKWVLQWKH&RPSDQ\¶VDVVHWVDQGGLYLGHQGVDVZHOO
as rights to vote at the general assembly of Shareholders on a one-Share-one-vote basis.
General Assembly of Shareholders
Annual General Assembly
Meetings of the general DVVHPEO\ RI WKH &RPSDQ\¶V 6KDUHKROGHUV PD\ EH E\ ZD\ RI DQQXDO RUGLQDU\ RU
extraordinary meetings. An annual general assembly is held at least once a year, within four months of the end of the
financial year. The annual general assembly shall consider maWWHUVLQFOXGLQJ'LUHFWRUV¶ DQG $XGLWRUV¶UHSRUWVWKH
balance sheet and the profit and loss accounts, the amount of dividends to be distributed, the appointment and
removal of Directors and/or auditors and the remuneration of Directors.
42 Extraordinary General Assembly
Extraordinary general assemblies are convened to discuss and approve matters other than those considered in annual
general assemblies, including: (i) amendment of the Memorandum or Articles of Association of the Company; (ii)
increase or decrease in the share capital of the Company; (iii) extension or shortening of the term of the Company;
or (iv) any sale or disposal, dissolution, liquidation or merger of the Company.
Invitation and Notice Period
A general assembly (annual or extraordinary) is convened by a notice from the Board. Such notice shall be
distributed by registered letters to shareholders and shall be published in two daily UAE newspapers published in the
Arabic language at least 21 days prior to the proposed date of the general assembly. The invitation must include an
agenda. Copies of the invitation and the agenda shall also be sent to the SCA and other competent authorities.
Registration
A shareholder who wishes to attend an ordinary or extraordinary general assembly shall register his/her name in the
electronic register made available by the management of the Company at the place of convening the meeting within
ample time before the meeting. The register shall include the name of the shareholder or his representative, the
number of Shares he/she owns or represents, the names of the represented shareholders (if any), and the appropriate
proxies and powers of attorney.
Convening of Ordinary General Assembly
In addition to an ordinary general assembly called by the Board, a minimum number of 10 shareholders together
holding at least thirty (30) percent of the Shares may require by notice to the Company that an ordinary general
DVVHPEO\EHFRQYHQHGE\WKH%RDUG$JHQHUDODVVHPEO\PD\DOVREHFRQYHQHGLIVRUHTXHVWHGE\WKH&RPSDQ\¶s
Auditors. In both cases, the invitation to convene must be issued within 15 days from the date of submitting the
request.
Convening of Extraordinary General Assembly
An extraordinary general assembly shall convene pursuant to an invitation by the Board of Directors. The Board
must convene an extraordinary meeting of the general assembly if requested to do so by shareholder holding at least
forty (40) percent of the Shares. In this case, the Board must send out the invitations to the shareholders within 15
days from the date of submitting the request.
Rights of Shareholders at General Assemblies
Every shareholder of the Company has the right to attend the general assembly. Each Share entitles its holder to one
vote. Any shareholder may appoint a proxy, who must not be a member of the Board, to attend the general assembly
on his behalf. In order for the proxy to be valid, it must be a written special power of attorney issued pursuant to any
terms and conditions determined by the Board and, if the proxy is not a shareholder, the signatures on that power of
attorney must be notarized. In any event, a proxy may not hold more than five (5) percent of the share capital of the
Company for more than one shareholder in that capacity. The quorum for a general assembly in its various
capacities and the majority necessary to adopt resolutions shall be subject to the provisions of the Companies Law.
T ransfer of Shares
As per applicable UAE laws, Shares held by the Founders will be subject to a mandatory lock-up period extending
IURP WKH GDWH RI WKH LQFRUSRUDWLRQ RI WKH &RPSDQ\ XQWLO WKH DQQRXQFHPHQW RI WKH &RPSDQ\¶V DXGLWHG ILQDQFLDO
statements relating to the second financial year following such incorporation. A Founder will not be allowed to sell
or transfer Shares duULQJVXFKSHULRGH[FHSWWRDQRWKHU)RXQGHUV7KH&RPSDQ\¶V$UWLFOHVRI$VVRFLDWLRQSURYLGH
that the transfer of Shares shall be governed by and shall comply with the regulations governing companies listed on
a UAE-regulated stock exchange, and/or any other investment exchange on which the Company is listed. The Shares
PD\ EH VROG WUDQVIHUUHG SOHGJHG RU RWKHUZLVH GLVSRVHG RI LQ DFFRUGDQFH ZLWK WKH &RPSDQ\¶V $UWLFOHV RI
Association. Transfers made other than in accordance with the Articles shall be void. The share participation by
nationals of the UAE must not, at any time, fall below fifty-RQHSHUFHQWRIWKH&RPSDQ\¶VVKDUHFDSLWDO
43 W inding-up of the Company
The Company is incorporated for a ninety nine (99) year term, which is renewable automatically for similar
consecutive terms unless a resolution of an extraordinary general assembly is issued to dissolve the Company.
The Company shall cease to exist upon the occurrence of any of the following events: (i) the expiration of the
specified term of the Company, unless it is renewed in accordance with the provisions set out in its Articles of
Association; (ii) fulfillment of the objects for which the Company was established; (iii) the issue of a resolution of
the extraordinary general assembly to dissolve the Company; and (iv) the merger of the Company with another
company.
In the event that the Company incurs losses amount to at least half the capital of the Company, the Board shall
convene an extraordinary general assembly to consider whether the Company should continue or be dissolved. No
resolution to dissolve the Company prior to the end of its term as stated of its Articles of Association, or shorten the
term of the Company, shall be effective unless adopted by the majority of Shareholders required pursuant to the
Companies Law.
Protection of M inority Shareholders
Article 12 of the Corporate Governance Regulations addresses the rights of Shareholders and how such rights should
be protected by the Company to ensure that each shareholder, regardless of the percentage of Shares he holds, may
exercise his Shareholder rights. These rights may be summarised as follows:
x
all the Shareholders shall have full rights with regard to their Shares, mainly the right to:
(i)
dividends;
(ii) a percentage in the assets of the Company upon liquidation;
(iii) attend shareholders' general assembly meetings;
(iv) contribute in discussions and vote at general assembly meetings;
(v)
dispose of the shares;
(vi) review the financial reports and the financial statements of the Company; and
(vii) have access to the ledgers and documents of the Company with the permission of the Board of Directors or
the general assembly as may be stipulated in the Articles of Association;
x
all Shareholders shall be treated equally with respect to permitting them to exercise their rights without
discrimination;
x
all Shareholders shall be aware of the rules and regulations governing the general assembly meeting and the
voting mechanism in such meetings;
x
a minimum number of 10 Shareholders together holding at least thirty (30) percent of the Shares may require by
notice to the Company that an ordinary general assembly be convened by the Board;
x
holders of at least forty (40) percent of the Shares may require by notice to the Company that an extraordinary
general assembly be convened by the Board;
x
all Shareholders shall have the right to contribute to the discussions of the general assembly meetings and vote
on resolutions;
x
all Shareholders shall be familiar with the candidates for membership to the Board of Directors in order to allow
them to be aware of the expertise and qualifications of each of them; and
x
the Board of Directors shall disclose material information related to the Company and its activities. The Board
of Directors shall be responsible for setting up a clear policy for dividend distribution that serves the best
interests of the Shareholders and the Company.
44 TAXATION
The UAE levies no personal income or withholding taxes of any sort. It also does not levy zakat, a religious tax on
income and property levied according to Sharia law in many Islamic countries. Although the UAE has promulgated
income tax decrees concerning corporate entities, some dating back as long ago as the 1960s, none of the Emirates
has yet enforced these decrees, except in the case of oil companies and, in Abu Dhabi, Dubai and Sharjah, on
foreign banks, which are currently paying corporate taxation on profits. Moreover, as the relevant machinery and
procedures to implement the tax laws has not been constituted, there is reason to believe that they may not be
enforced in the near future. However, the decrees indicate that if taxation is introduced, tax laws could be enforced
retroactively and exemptions could be sought from the respective authorities in appropriate cases. The main
corporate income tax decrees are those of Abu Dhabi and Dubai. They differ in the method of tax computation on
taxable income. In 2002, Federal Decree No. 55 was issued, imposing 5% customs duty on all assets imported by a
company operating in the UAE, unless such company is exempted by the MoF from such customs duty. Subscribers
should be aware that aside from UAE taxes, there may be taxes in other jurisdictions relevant, depending on the
nationality and the particular circumstances of the investors. These issues are often complex and if Subscribers are
in any doubt, they should consult specialist taxation advisors.
45 A U D I T O RS
The general assembly of the Company will appoint a reputable international audit firm to perform the audit of its
accounts, starting with the first financial year beginning from the date of incorporation of the Company and ending
on 31 December of the following year. The auditor shall be appointed for a renewable term of one year.
46 C203$1<¶6$3352;,0$7((;3(16(6
The Company's expenses incurred due to its incorporation and issuance of its securities are, approximately,
as follows:Lead Receiving Bank
AED 600,000
Receiving Bank 1
AED 250,000
Receiving Bank 2
AED 250,000
Receiving Bank 3
AED 250,000
Receiving Bank 4
AED 250,000
Receiving Bank 5
AED 250,000
Receiving Bank 6
AED 250,000
Receiving Bank 7
AED 250,000
Fees For Services Rendered by the IPO Processing Center
In the Subscription and Allotment Periods
AED 1,000,000
Lead Manager Fees
AED 5,000,000
Legal Consultation Fees
AED 500,000
Auditor Fees
AED 250,000
Advertising Expenses and PR campaign
AED 5,137,000
Typing Expenses (including printing and translation fees)
AED 300,000
Government Fees (SCA Fees + DFM Listing Charges)
AED 110,000
Total:
A E D 14,647,000
Said expenses shall be deducted from the general expenses account.
47 L E G A L M A T T E RS
7KHIROORZLQJVXPPDU\LVTXDOLILHGE\WKHUHOHYDQWSURYLVLRQVRIWKH&RPSDQ\¶V0HPRUDQGXPRI$VVRFLDWLRQDQG
the Articles of Association and the Companies Law.
A rticles of Association
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The capital of the Company is AED 500,000,000 divided into 500,000,000 shares of 1 Dirham (AED 1) each. In
addition, Offering Costs in the amount of AED 0.03 per Offer Share will be payable by the Subscribers for Offer
Shares.
Voting Rights
Each shareholder shall have the right to attend the general assembly of the shareholders and shall have a number of
votes equal to the number of his Shares.
Share Register
Upon listing on the DFM, the Shares will be dematerialised and the share register will be maintained by the DFM.
F inancial Y ear
The financial year of the Company will start on the 1st of January and end on December 31st of December of each
year. The first financial year of the Company will start upon incorporation of the Company and end on December 31
of the following year.
Dividends
Each shareholder shall have the right WR GLYLGHQGV ZKHWKHU ³FDVK´ RU ³ERQXV VKDUHV´ in accordance with the
provisions of the Companies Law and regulations issued by the SCA in this regards.
General Assembly
The Board of Directors may convene an ordinary general assembly whenever it deems necessary. In any event, the
general assembly must convene at least once a year upon an invitation by the Board of Directors within the four (4)
months following the end of the financial year at the place and the time specified in the invitation to the meeting.
Board of Directors
According to the Articles of Association, the Company shall be managed by a Board of Directors of 6 members.
The members of the Board Directors are to be elected by way of secret cumulative voting during an ordinary general
assembly. The first Board of Directors will be appointed by the Founders for a period of three years commencing on
the date of incorporation. The majority of the Board members must be UAE nationals, as must the Chairman of the
Board.
48 C O M PA N Y O V E R V I E W
Introduction
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Officer Chief Executive Officer General Manager Retail Brand 1
Manager Brand 1
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Manager Brand 3
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Manager General Manager ±
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51 M anagement and Founders Committee
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Mohammad A l Q ahtany (M ember of the F irst Board of Directors) is the Managing Director of Abwab Capital, a
DIFC regulated Investment Company. Under his leadership he oversaw a fundamental restructuring of Abwab
Capital (formerly Univest Capital ) into an investment boutique firm focusing on GCC investment banking
transactions and asset management.
Mr. AlQahtany is also the Chairman and Managing Director of F irst Equilease, a leading leasing company in
Kuwait with a focus on providing equipment leasing solutions for the GCC construction market.
Previously, Mr. AlQahtany was the founder and CEO of Ala man Investment Company, a leading Shariah-compliant
investment bank listed on the Kuwaiti Stock Exchange. Under his leadership, Alaman was considered to be one of
the largest Islamic firms in terms of assets under management in the GCC.
Prior to joining Alaman, Mr. AlQahtany was the Deputy General Manager of Industrial and F inancial Investments
Company (IFIC), a publicly listed investment company on the Kuwaiti Stock Exchange. During his time at IFIC,
Mohammad was part of the team that launched the first ever private equity fund in Kuwait ( Direct Investment Fund)
in1998, the first Islamic venture leasing fund ( Commvest Ijara ) in 2000 and the first Kuwaiti internationally
recognized index fund in Kuwait ( I F IC Dow Jones Kuwait Index Fund) in 2005.
Mr. AlQahtany is a Certified Public Accountant (CPA) from American Institute of Certified Public Accountants
(AICPA). He holds a Masters degree with honors in Accounting from the University of Miami (Florida, USA) and a
EDFKHORU¶VGHJUHHLQ$FFRXQWLQJIURP Kuwait University.
53 SW O T A nalysis
E xhibit 6: SW O T A nalysis
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E xhibit 7: Dubai G DP B reakdown by Sectors (2011)
Source: UAE National Bureau of Statistics
It may be expected that a sector of this size and importance would be well represented on the UAE stock exchanges.
This is, however, not the case for multiple reasons. The main reason, related to privately owned entities, is that most
of the major wholesalers and retailers have been family owned businesses for generations with good access to
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55 E xhibit 8: M ar ket C ap of Retailers and W holesalers as % of G DP (2012)
30%
25%
20%
15%
10%
5%
0%
USA
Japan
Germany
France
UK
GCC (excl UAE)
UAE
Source: IMF, Bloomberg
Merits
9
9
9
9
9
9
9
A unique opportunity for global and regional, individual and institutional investors to participate in one of
the fastest growing segments in the MENA region
Facilitating the mobilization of permanent capitaOWRDQLQGXVWU\ZKLFKLVDNH\FRQWULEXWRUWRWKHHPLUDWH¶V
GDP
First of its kind (listed play on GCC retail) in the UAE ± could pave the way for further listings in the
future
Having a positive impact on different sectors of the economy, including, but not limited to:
o Retail: Increasing the attractiveness of the existing retail offering mix by introducing new
concepts to the market
o Tourism: Contributing to the shopping and entertainment paradise image of Dubai; a number of
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o Real Estate: Participating in the growth and appeal of the retail real estate sector
o O ther Services: Participating in the growth of different other service based sectors including
logistics and transport and financial and other professional services
Direct and indirect job creations
o Direct: It is anticipated that the Company will have circa 100 employees (including UAE
nationals) with various backgrounds working at its Dubai based head office and hundreds of
others throughout its outlets by Year 5
o Indirect: This is expected to be significantly higher due to the support activities generated mainly
in the tourism, real estate and contracting and logistics sectors
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Sponsoring local talents / designers
56 I N D UST R Y O V E R V I E W
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E xhibit 9: Snapshot of the G C C Retail Sector
Source: World Bank, BMI, 2011 figures
F undamentals & G rowth D rivers
Growth in Population
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E xhibit 10: G rowth in Population
Source: IMF Note: A=Actual, E=Estimated F avorable Demographics
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6RXUFH³$IIRUGDEOHKRXVLQJD*&&SULRULW\´$UDE1HZV2FWREHU 58 E xhibit 11: Youth and E xpatriate Population by Country
% Population
Between
Ages 0-14
31%
28%
26%
20%
21%
13%
Country
O man
K SA
K uwait
Bahrain
UAE
Q atar
% Population
Between
Ages 15-24
20%
20%
15%
16%
14%
14%
% Population
Between
Ages 25-54
42%
45%
52%
56%
62%
70%
% E xpatriate
Population
30%
32%
68%
55%
89%
80%
Source: IMF, CIA World Factbook, UN ESA (2010), Euromonitor, UAE National Bureau of Statistics Growing Disposable Income
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E xhibit 12: G DP per C apita (PPP) Comparison (2012)
120,000
102,211
100,000
USD
80,000
60,000
49,922
49,012
39,889
40,000
31,275
39,028
36,941
29,166
28,744
20,000
9,162
11,875
3,830
il
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Source: International Monetary Fund
Surging Tourism Sector
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E xhibit 13: G C C Tourist A r rivals by Country
Source: Alpen Capital
3
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60 E xhibit 14: Expected G rowth of Tourist A r rivals in the G C C
Source: World Travel & Tourism Council, Alpen Capital
Note: E = Esti mate, F = Forecasted
E xhibit 15: Tourism Spending in the G C C
100
USD bn
80
60
25
21
21
23
46
52
53
55
59
2010
2011
2012F
2013F
2014F
18
40
20
0
Leisure travel & tourism spending
Business travel & tourism spending
Source: World Travel & Tourism Council, Alpen Capital
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61 E xhibit 16: Visa C ard Spending in the U A E by the Top 10 Inbound Source M ar kets
Source: VisaVue Travel Data 2010-2011
Continued Modernization of the Industry
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E xhibit 17: G C C Retail Sales ± Forecast & Composition
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E xhibit 18: G C C Countries F eaturing on the 2012 G lobal Retail Development Index
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64 E xhibit 19: Country-Wise Contribution to the G C C Retail M ar ket
E xhibit 20: Country-Wise Retail Sales G rowth
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65 E xhibit 21: Completed G L A and Projected A dditions in the G C C (2011)
Source: Retail International, Alpen Capital
E xhibit 22: G L A per C apita Comparison for the G C C Countries (2011)
Source: Retail International, International Monetary Fund, Economic Intelligence Unit, Alpen Capital
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66 E xhibit 23: Forecast of O ccupied G L A in the G C C Shopping C enters
Source: Retail International, Alpen Capital
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