Dubai Eyes Its Second IPO in Three Years With Tristar Listing
Middle Eastern logistics firm Tristar Transport is looking to raise gross primary proceeds of between $120 million and $160 million in an initial public offering in Dubai next month, in what would be only the financial hub’s second listing in three years.
The company plans to offer up to 24% of its shares in the IPO, according to a statement on Tuesday, valuing it at as much as $964 million. The placement will include an issuance of 199 million new shares and a secondary offering of up to 88.8 million shares by existing shareholders.
Sovereign wealth fund Emirates Investment Authority has the right to subscribe to buy 5% of the offer. Kuwaiti logistics firm Agility Public Warehousing Co. plans to sell just under 15% of its stake in Tristar and will remain a majority shareholder after the IPO.
If priced at the top of the of the range, the IPO would be the biggest on Dubai’s main exchange since 2017, when Emaar Development PJSC raised $1.3 billion. Since then, new offerings have languished amid shrinking volumes and delistings of major companies such as port operator DP World. By contrast, new offerings jumped in neighboring Saudi Arabia.
Al Mal Capital was until now the most recent company to tap Dubai’s market, raising about $95 million by listing its real estate investment trust unit in December.
Tristar had initially planned to sell shares in London, but those plans were scuttled after a fraud at London-listed firm NMC Health Plc revealed $6 billion of hidden debt, increasing worries among global investors about governance and transparency issues at Gulf firms.
Bank of America Corp. and Citigroup Inc. had been retained as global coordinators and joint bookrunners for the sale, according to the statement. First Abu Dhabi Bank PJSC and HSBC Bank Middle East Limited are joint regional coordinators, Societe Generale SA is a joint bookrunner and Kuwait Financial Centre KPSC is a co-lead manager.
Tristar operates in 20 countries, and provides transportation and storage services to customers including Abu Dhabi National Oil Co., Total SA and Dow Inc.
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